Israeli Firm Set to Secure Indian Air Force Aerial Tanker Deal

The Indian Air Force is on the verge of reaching a significant procurement milestone, as it is set to award an Rs 8,000 crore contract to Israel Aircraft Industries (IAI) for six aerial tanker planes. The Israeli government-owned firm emerged as the sole vendor, meeting all the necessary criteria, including a 30 per cent Made in India content clause through offsets.

In a competitive bidding process that saw participation from Russian and European companies, IAI was the only contender left standing. The others failed to meet the stringent requirements, particularly the one demanding 3-30 per cent indigenous content on refurbished planes. This acquisition plan has been on the cards for over a decade, aiming to bolster the Indian Air Force's mid-air refuelling capabilities.

The IAF currently operates six Russian-origin Il-78 mid-air refuelling aircraft, which provide critical support to its fighter jets and naval operations. Despite several attempts over the past 15 years to expand this fleet, the IAF faced repeated setbacks. Recently, the air force wet-leased a tanker aircraft, underscoring the urgent need to increase its refuelling capacity to support its expanding operational requirements. Moreover, the IAF is in the process of phasing out its aging aircraft, necessitating a new fleet capable of extended operational reach with in-flight refuelling.