Indian Air Force Strikes Gold in May: Encashment 2030 and Beyond
- rkbhonsle
- 2 minutes ago
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The month of May [2026] has been particularly significant for the Indian Air Force [IAF]. The call for accelerating projects and programmes by the IAF Chief Air Chief Marshal A P Singh appears to be finally paying off as the Ministry of Defence initiated combat fighter acquisitions with one Request for Proposal [RFP], another Letter of Request [LOR] and US firm Honeywell delivering the first batch of three engines for the overdue indigenous basic trainer aircraft to Hindustan Aeronautics Limited (HAL).
AMCA
Firstly, the RFP for production of five prototypes of the Advanced Medium Combat Aircraft (AMCA) at an estimated cost of ₹15,000 crore was issued to three shortlisted bidders: Tata Advanced Systems Limited (TASL); Larsen and Toubro plus Bharat Electronics Limited (BEL), and Bharat Forge plus Bharat Earth Movers Limited as per multiple media sources. The selected agency will team up for design and expertise with Aeronautical Development Agency (ADA) of the DRDO. The timelines as indicated in media reports are first prototype by early 2027, the first flight between 2028-2029 and serial production of the fighter in the mid-2030s with newer versions of the fighter fitted with 120 KM French Safran engines made in India replacing GE 414 F414‑INS6 98 KN.

The foundation stone for the ₹15,803 crore Integration and Flight-Testing Complex at Puttaparthi in Andhra Pradesh was laid on May 15, by the Defence Minister Mr Rajnath Singh in the presence of Andhra Chief Minister Mr Chandra Babu Naidu.
With the Hindustan Aeronautics Ltd the Ministry of Defence own Public Sector Undertaking not on the list the onus is on India’s defence private sector to prove their credentials in establishing an aircraft assembly line for the complex task of assembling a fifth generation fighter aircraft apart from the radar, weapons and other accessories for the purpose.
None of the three bidders have any proven expertise in managing such a complex project. The closest is Tata Advance Systems now involved in assembly of the C 295 transport aircraft in a plant in Vadodara.
Moreover, the Integration and Flight-Testing Complex is also under development commencing May 15. Realistically speaking the timelines as well as banking on raw players appears overly optimistic.
The wisdom of leaving the HAL completely also needs consideration, this may imply reliance on the private sector for future combat aircraft manufacture of fifth generation and above as HAL capability will be capped at the current 4.5 generation LCA Mark 1a.
Dassault Rafale
The Ministry of Defence has reportedly finalized the Letter of Request (LoR) to procure 114 Dassault Rafale multi-role fighter jets. The distribution is 22 Rafales in fly-away condition and ninety-two manufactured in India with a partnership between France’s Dassault Aviation and an Indian private sector company.
Indian firms in contention include Tata Advanced Systems Limited, Mahindra, and the Adani Group. Tata Advanced Systems is already setting up a production facility in Hyderabad to manufacture the Rafale’s key structural sections, including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section by FY2028 as per the Print. The fleet of thirty-six Rafale would be upgraded from the current F3 standard to the F4 configuration as part of the contract.
The LoR will commence the process for government-to-government procurement which outlines the IAF’s specific operational needs, technical parameters, and desired quantities. This will be followed by a RFP for commercial and technical negotiations after France responds to the LoR. Some media sources have stated that the contract will be signed by end of the fiscal year before March 2027 which based on past records is an optimistic estimate given complex nature of negotiations and the perpetual issue of sharing technology and source code apart from price negotiations. Moreover, selection of an Indian partner and liability are likely to be key issues which had led to delays in the past iteration of acquisitions. The first Rafale aircraft is expected to be inducted in the IAF by 2030 continuing through the decade. Creative advance planning will facilitate achieving the timelines.
Engines for HTT-40 Trainer
US industrial major Honeywell has delivered the first batch of three TPE331-12B turboprop engines for indigenous basic trainer aircraft—critical for the Indian Air Force—to Hindustan Aeronautics Limited (HAL). Of the contracted 88 TPE331-12B engines/kits, Honeywell was supposed to deliver the first engine in September 2025.
Sixteen units will be supplied by Honeywell while rest will be through technology transfer at the rate of two per month. Two series production HTT-40s are currently flying with ‘Category B’ (used) TPE331-12B engines that powered the prototype aircraft.
There is an urgent need of the basic trainer for the IAF after the Pilatus procured from the Swiss company [of the same name] follow on order has faced challenges of contract violations.
Disclosure - The author has minor equity exposure in some of the companies mentioned in the report.
