Military

Israel Aerospace Industries Set to Secure Rs 8,000 Crore Contract for Indian Air Force Mid-Air Refuelling Tankers

Published On Tue, 28 Oct 2025
Fatima Hasan
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The Indian Air Force (IAF) is on the brink of securing a significant enhancement to its mid-air refuelling capabilities with a major contract poised to be awarded to Israel Aerospace Industries (IAI). The deal, valued at about ₹8,000 crore, involves acquiring six aerial refuelling tanker aircraft, which will be converted from pre-owned Boeing 767 commercial jets. This long-awaited acquisition marks a substantial step forward in boosting the operational endurance and reach of the IAF’s fighter fleet.
Over the past 15 years, the IAF has actively sought to expand its mid-air refuelling fleet to support its growing array of advanced fighter jets like the Su-30MKI, Rafale, and MiG-29K. Currently, the service relies on six Russian-origin Il-78 aircraft stationed at Agra, but maintenance challenges and operational limitations have underscored the pressing need for additional refuellers. Until now, previous efforts to procure tankers from European and Russian manufacturers have stalled due to cost and compliance issues.
IAI emerged as the sole surviving vendor in a rigorous and multi-year competitive tender process, having met all technical, operational, and indigenous content requirements. The Israeli firm committed to integrating approximately 30% “Made in India” components through offsets, aligning with Indias drive to enhance domestic defense manufacturing under the ‘Atmanirbhar Bharat’ initiative. This local involvement is expected to benefit Indian companies across avionics, component production, and maintenance sectors.
The contracted aircraft will undergo a sophisticated conversion process, equipping them with state-of-the-art refuelling systems and avionics tailored for the demands of modern air warfare. IAI’s expertise in converting such aircraft for air-to-air refuelling missions globally has positioned it strongly for this contract, promising to deliver tankers capable of significantly extending the flying hours and operational radius of IAF combat aircraft.
With these new tankers, the Indian Air Force will markedly improve its ability to sustain longer missions without the need for frequent landings, ultimately enhancing Indias airpower projection over strategic areas including the Indian Ocean Region. This capability is especially crucial as India continues to strengthen its defense posture amid evolving regional security dynamics. This ₹8,000 crore deal, pending final formalities, signals a transformative upgrade for the IAF’s mid-air refuelling fleet, reaffirming India’s commitment to modernizing its air force with strategic, cost-effective, and indigenously connected solutions.
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