IAF set to buy Rs 80 billion aerial tankers from Israeli firm
AVIATION & AIRPORTS

IAF set to buy Rs 80 billion aerial tankers from Israeli firm

The Indian Air Force (IAF) is likely to finalise a Rs 80 billion deal for the purchase of six aerial refuelling aircraft from Israel Aircraft Industries (IAI), a government-owned firm that has emerged as the sole qualifying bidder.

If awarded the contract, IAI will convert six pre-owned Boeing 767 commercial aircraft into mid-air refuelling tankers before supplying them to the IAF, according to defence sources.

The Israeli company has committed to ensuring around 30 per cent Made-in-India content through offset obligations under the agreement. The tender, which began several years ago, initially saw participation from Russian and European firms, but IAI remained the only contender meeting all requirements, including the clause mandating 3–30 per cent indigenous content for second-hand aircraft.

The IAF currently operates a fleet of six Russian-origin Il-78 tankers, based in Agra, which support refuelling operations for various fighter aircraft of the Air Force and Navy.

Over the past 15 years, the IAF has made multiple unsuccessful attempts to procure additional tankers due to procurement hurdles and budgetary constraints. Although it recently wet-leased a tanker aircraft, the force continues to face a shortfall as it transitions to newer fleets capable of extended missions through mid-air refuelling.

The Indian Air Force (IAF) is likely to finalise a Rs 80 billion deal for the purchase of six aerial refuelling aircraft from Israel Aircraft Industries (IAI), a government-owned firm that has emerged as the sole qualifying bidder. If awarded the contract, IAI will convert six pre-owned Boeing 767 commercial aircraft into mid-air refuelling tankers before supplying them to the IAF, according to defence sources. The Israeli company has committed to ensuring around 30 per cent Made-in-India content through offset obligations under the agreement. The tender, which began several years ago, initially saw participation from Russian and European firms, but IAI remained the only contender meeting all requirements, including the clause mandating 3–30 per cent indigenous content for second-hand aircraft. The IAF currently operates a fleet of six Russian-origin Il-78 tankers, based in Agra, which support refuelling operations for various fighter aircraft of the Air Force and Navy. Over the past 15 years, the IAF has made multiple unsuccessful attempts to procure additional tankers due to procurement hurdles and budgetary constraints. Although it recently wet-leased a tanker aircraft, the force continues to face a shortfall as it transitions to newer fleets capable of extended missions through mid-air refuelling.

Next Story
Infrastructure Energy

K2 Infragen secures BBB- rating for Rs 2 billion facilities

K2 Infragen has secured an ACUITE BBB- rating with a Stable outlook for its long-term bank facilities and an ACUITE A3 rating for its short-term facilities from Acuité Ratings & Research, covering total bank facilities of Rs 2 billion.The rating comprises Rs 1.27 billion of long-term borrowings and Rs 730 million of short-term working capital facilities.According to the rating agency, the investment-grade rating reflects K2 Infragen's business risk profile, revenue growth, execution capabilities and financial discipline. The assessment is also supported by the company's order book, which ..

Next Story
Real Estate

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

Next Story
Infrastructure Energy

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement