India’s Ministry of Defence (MoD) has issued a tender valued at around Rs1tn ($10.48bn) for the acquisition of 60 multirole transport aircraft (MTA) for the Indian Air Force (IAF).
According to officials, the tender, issued on Wednesday 12 August 2026, has been circulated to several domestic aerospace firms, including Hindustan Aeronautics Limited (HAL), Tata and Mahindra.
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Sources from the Defence Ministry stated that the procurement will be led by Indian companies, who will form joint ventures with global original equipment manufacturers (OEMs) to manufacture the majority of the aircraft domestically.
Of the 60 MTAs, around one-fifth or 20% are expected to be delivered in fly-away condition, with the remainder produced in India.
The aircraft built locally are targeted to feature more than 60% indigenous content, as per the procurement guidelines shared by the ministry.
At least two major partnerships have emerged as contenders for the contract. Mahindra Defence, in collaboration with Brazil’s Embraer, is proposing the C-390 Millennium, while Tata has partnered with Lockheed Martin to offer the C-130J Super Hercules.
The latter model is already in service with the IAF’s special operation squadrons.
The Defence Ministry has identified rapid long-distance transport of troops and equipment as a central requirement, with the new MTAs intended to bolster India’s strategic and tactical airlift capability.
Additionally, the ministry has indicated that selected aircraft could be reconfigured for aerial refuelling roles, potentially enhancing the IAF’s tanker fleet.
The current IAF transport fleet includes 12 C-130J aircraft and a planned fleet of 56 C-295s.
The C-295 programme, a separate joint effort between Airbus and Tata, is already underway, with most of those platforms also being assembled in India.
In June, the first Airbus C295 military transport aircraft assembled in India completed its initial test flight from the Final Assembly Line (FAL) in Vadodara, Gujarat.
In separate development, the IAF has reportedly issued a Request for Information (RFI) for roughly 150 Stage III (F) jet trainer aircraft.
The requirement covers advanced trainer jets equipped with modern fly-by-wire systems, HOTAS controls, and a full suite of integrated simulators and ground support systems.
Defence sources note that industry responses to the RFI are due by October 2026, with formal requests for proposals anticipated by late 2027.
Recently, France formally submitted a technical and commercial proposal to India for the purchase of 114 Rafale multirole fighter jets.
