114 Rafales, 60 MTA aircraft, AEW&C deals to be concluded in 2026-27: Defence ministry to parl panel

NEW DELHI: To boost IAF’s strength, India is set to conclude several big contracts in the financial year 2026-27, including deals for buying 114 Rafale fighter jets, up to 60 medium transport aircraft (MTA) and additional airborne early warning and control (AEW&C) systems, the defence ministry has told a parliamentary panel.

“There is an increase of 37.03% in IAF’s capital budget as compared to budget estimates for 2025-26. The allotted funds are planned to be utilised against some of the major new schemes like multi-role fighter aircraft (referring to proposed Rafale deal), combat enablers (AEW&C, Tejas MK1A), Medium Transport Aircraft (MTA) and medium-altitude long-endurance RPA (remotely piloted aircraft), in addition to the ongoing committed liabilities,” the ministry told the parliamentary standing committee on defence, which submitted its latest report in Lok Sabha last week.




In Feb this year, Defence Acquisition Council (DAC) cleared the purchase of 114 Rafale jets under the Multi-Role Fighter Aircraft (MRFA) programme; the proposed deal for the jets along with military hardware is expected to cost around Rs 3.25 lakh crore. Under the MRFA model, the new Rafales will be made in India by French company Dassault Aviation in collaboration with an Indian partner. “Keeping in view the modernisation of the armed forces, especially in the current geo-political scenario, the committee urges the air force to gainfully utilise the allocated funds for modernisation and technological upgradation in armament and in the procurement of other vital platforms,” the report said.

The Defence Acquisition Board recently cleared a plan to procure 60 Medium Transport Aircraft (MTA) for IAF, estimated to cost Rs 1 lakh crore. The programme aims to replace the aging An-32 fleet, requiring 12 aircraft in fly away condition and 48 to be manufactured locally. Top contenders include Embraer C-390 Millennium, Lockheed Martin C-130J Super Hercules and European Airbus Defence and Space with its A-400M.

“Critical combat enablers like AEWACs, flight refuellers and special electronic intelligence and surveillance platforms are vital... These systems not only enhance our intelligence and battlefield transmission but also provide commanders with modern warfare's electronic order of battle information. All these combat intelligence systems are extremely effective platforms for enhancing the combat capability of all three services,” the ministry informed the committee.

The committee was also told that IAF is committed to self-reliance and is providing full-fledged support to national objectives. “In order to spearhead innovation and indigenisation, the IAF has formed a new directorate, named Directorate of Aerospace Design (DAD). This directorate actively interacts with industries, R&D institutions and academia to ascertain niche technologies in the aerospace domain and evolve modus operandi to convert them into tactical and strategic war fighting solutions, utilising indigenous resources,” the report said.
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