India seeks 60 new transport aircraft for IAF, invites bids for a $10 billion deal
The Ministry of Defence issued a Request for Proposal (RFP) for 60 new medium transport aircraft for the Indian Air Force, with an estimated deal value of around $10 billion (about ₹1 lakh crore), and an option clause for additional aircraft.
The new aircraft are intended to replace the IAF's ageing AN-32 fleet, and potentially some IL-76 heavy-lift aircraft.
The RFP has gone out to Indian companies — including Tata Group (with Lockheed Martin's C-130J), Mahindra Defence and Adani Defence (both linked to Embraer's C-390/KC-390), and Hindustan Aeronautics Limited — each expected to partner with a foreign Original Equipment Manufacturer (OEM).
Airbus's A400M, initially in contention, is reported likely to be withdrawn from the race as its 37-tonne payload capacity exceeds the specified requirement band.
The programme requires progressively higher indigenous content — a minimum of 40% initially, rising to 60% — with initial aircraft delivered in fly-away condition and subsequent units assembled in India.
Defence Acquisition Procedure (DAP), 2020 — Procurement Categories
Capital acquisitions for the Armed Forces are governed by the Defence Acquisition Procedure, 2020, promulgated by the Ministry of Defence, which supersedes the earlier Defence Procurement Procedure (DPP), 2016.
Key Details
- Key procurement categories, in order of indigenisation priority, are: Buy (Indian-IDDM — Indigenously Designed, Developed and Manufactured), Buy (Indian), Buy and Make (Indian), Buy (Global — Manufacture in India), and Buy (Global).
- Buy (Indian-IDDM) requires a minimum 50% indigenous content; Buy (Indian) requires a minimum 60% indigenous content from Indian manufacturers.
- Proposals originate with Services Headquarters, are cleared by the Defence Acquisition Council (DAC, chaired by the Raksha Mantri) for "Acceptance of Necessity," proceed through RFP issuance, technical/field trials and commercial negotiation, and require Cabinet Committee on Security (CCS) approval for high-value contracts before signing.
- DAP 2020 also introduced Leasing (Indian/Global) as a distinct acquisition category, alongside the Strategic Partnership Model (SPM) for select high-technology platforms.
The phased indigenisation requirement (40% rising to 60%) and mandatory Indian-industry partnership with a foreign OEM in this transport aircraft deal reflect the "Buy (Global — Manufacture in India)" category and DAP 2020's broader push toward indigenisation under Atmanirbhar Bharat.
The AN-32 Fleet and India's Transport Aircraft Modernisation
The Antonov An-32 ("Sutlej" in IAF service) is a Soviet/Ukrainian-origin twin-turboprop tactical transport aircraft inducted into the IAF from 1984, valued for short-field and high-altitude operations, including resupply to forward and Himalayan airbases.
Key Details
- The IAF's An-32 fleet underwent a mid-life upgrade (An-32RE) under a contract with Ukraine, extending service life, but the fleet is now well past the point where replacement planning is required.
- This is not India's first transport-aircraft modernisation: the earlier HS-748 Avro fleet was replaced under a separate programme by the C-295, built through a Tata-Airbus joint venture with a final assembly line established in Vadodara — the first instance of a military aircraft being manufactured in India by a private-sector company.
- The IL-76, also under consideration for replacement in the same programme, is a Soviet/Russian-origin heavy-lift strategic airlifter used for larger payload and longer-range logistics.
The C-295/Avro replacement programme is a direct institutional precedent for the current AN-32 replacement effort — both follow the Buy Global-Manufacture in India model with a private/PSU Indian partner and a foreign OEM, reinforcing an established pattern in India's defence-aviation indigenisation strategy.
Strategic and Diplomatic Dimension of the OEM Contest
The shortlisted platforms in the current RFP originate from three different foreign partner countries, giving the contract an added strategic-diplomacy dimension.
Key Details
- Lockheed Martin's C-130J Hercules is of US origin; the IAF already operates C-130J aircraft, inducted from 2011, based out of Hindon.
- Embraer's C-390/KC-390 Millennium is of Brazilian origin, positioned as a modern medium-lift alternative with a stated payload of around 26 tonnes.
- Airbus's A400M is a European (multinational consortium) platform; its likely exit from this contest is attributed to its 37-tonne payload exceeding the 18–30 tonne category specified for this procurement.
- Platform choice in such deals often carries implications for interoperability, logistics-sharing and defence-industrial partnerships with the OEM's home country, alongside the core technical evaluation.
The final choice of platform and foreign partner will shape not just IAF capability but also India's defence-industrial relationships with the United States, Brazil, or the European consortium involved, consistent with the broader trend of linking major defence contracts to strategic partnerships.
- RFP scope: 60 transport aircraft, with an option clause for more; estimated value ≈ $10 billion (≈ ₹1 lakh crore).
- Weight/payload category specified: 18–30 tonnes.
- Indigenisation requirement: minimum 40% initially, rising to 60%.
- Aircraft under consideration: Lockheed Martin C-130J (~19 tonnes payload, Tata Group partner), Embraer C-390/KC-390 (~26 tonnes payload, Mahindra Defence/Adani Defence partners), HAL-Russia MTA; Airbus A400M (37-tonne payload) likely to withdraw.
- Fleet being replaced: AN-32 (inducted from 1984); IL-76 also under consideration.
- Precedent programme: C-295 replacement of HS-748 Avro fleet via Tata-Airbus JV, final assembly line at Vadodara.
- Procurement framework: Defence Acquisition Procedure (DAP), 2020, under the Defence Acquisition Council (DAC)/Cabinet Committee on Security (CCS) approval chain.