IAF to acquire 83 Tejas fighter jets for $5.4 billion from Hindustan Aeronautics Limited

NEW DELHI: The Indian Air Force (IAF) has concluded a $5.46 billion (Rs 39,000 crore) deal with India’s state-run Hindustan Aeronautics Limited (HAL) for 83 Light Combat Aircraft Tejas at the cost of $65.78 million (Rs 469.5) crore per jet.

“With the contract price now settled at Rs 39,000 crore, the procurement file is being sent to the Cabinet Committee on Security for final nod. It should be cleared before this fiscal ends on March 31. Once the contract is inked, HAL promises to begin deliveries of the Mark-1A jets in three years,” according to a report.

Earlier, the contract was pegged at $7.91 billion (Rs 56,000 crore). The reduction in cost has come after hard-nosed negotiations spread over a year between the IAF, the defense ministry and the manufacturer.

“HAL, for instance, was even charging profit on imported components. Item by item, the cost was brought down. IAF also cut down some of its support requirements,” the report added.

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