To speed up the production and delivery of Light Combat Aircraft (LCA) TEJAS MK-1A fighters for the Indian Air Force (IAF), the state-owned aerospace behemoth Hindustan Aeronautics Limited (HAL) is strengthening its partnership with top private Indian companies, such as Larsen & Toubro (L&T) and Tata Aerospace.
This strategic collaboration follows the Defence Acquisition Council’s November 2023 approval of a large new order for 97 more TEJAS MK-1A aircraft, valued at about ₹650 billion ($7.8 billion). This purchase adds to an existing agreement for 83 TEJAS MK-1A aircraft from January 2021, increasing the IAF’s commitment to 180 aircraft overall.
HAL is dramatically increasing its manufacturing capacity in order to fulfill the IAF’s strict delivery deadlines and its pressing need to replace its aging fleets of MiG-21, MiG-27, and Jaguar aircraft. The company has set the lofty target of producing 24 TEJAS aircraft a year by 2025–2026.
HAL’s two current production lines in Bangalore and a new facility in Nashik, Maharashtra, which opened in the middle of 2025, will be used in this ramp-up. HAL’s third line for TEJAS, the Nashik line, is essential to overcoming past production delays and is anticipated to be crucial in bringing the IAF’s combat squadron strength back up to the authorized level.
The increased outsourcing of significant modules and sub-assemblies to private sector partners is a key component of HAL’s strategy. Larger, pre-assembled portions of the aircraft are now to be delivered by L&T and TATA, two well-known providers of significant aero-structures. This strategy aims to decrease bottlenecks, expedite the assembly process overall, and simplify final integration at HAL facilities.
The first outsourced rear fuselage section for the MK-1A was delivered by the private company Alpha Tocol in March 2025, marking a significant milestone in this public-private partnership. The success of the collaborative production model was highlighted by Defence Minister Rajnath Singh, who praised the occasion as a proud moment for India’s “Make in India” defence initiative.
Notwithstanding these strategic developments, HAL continues to face difficulties, especially with regard to GE Aerospace’s supply of F404 engines in the US.
Due to GE’s workforce shortage and pandemic-related delays in engine deliveries, the assembly line has slowed, and HAL has only completed a small number of MK-1A jets from the original order thus far. Although HAL had six aircraft scheduled for delivery by the middle of 2025, GE had only provided one engine; 12 engines were anticipated by March 2026.
IAF leadership has voiced public concerns about this shortfall and questioned HAL’s capacity to fulfill its updated delivery goals, especially during high-profile occasions like the Aero India 2025 air show.
The leadership of HAL has admitted these problems and blamed external supply chain interruptions rather than internal inefficiencies for the delays. According to reports, GE has fixed technical issues, so HAL is still optimistic that it can ramp up production as planned—as long as engine deliveries go according to plan. In the future, HAL wants to deliver 16 jets the year after, with the objective of achieving the 24-jets-per-year target by 2026.
In addition to helping the IAF achieve its modernization objectives, the effective implementation of this expanded, cooperative production model is essential for developing India’s domestic defense manufacturing capacity.
With its electronic warfare systems, AESA radar, sophisticated avionics, and compatibility with contemporary weapons, the TEJAS MK-1A is positioned as a vital tool for thwarting regional security threats and lowering dependency on imported fighters. HAL must overcome the present supply chain obstacles in order to fulfill its obligations and assist the IAF in regaining and improving its operational capability.
