India is poised to sign a record deal with Hindustan Aeronautics Limited for 97 Tejas Mark-1A fighter jets, valued at Rs 66,500 crore, according to a report.

This will be the largest contract for the indigenous fighter jets, even though the Indian Air Force has yet to receive the first unit from its earlier order of 83 improved jets, placed in February 2021 for Rs 46,898 crore.

The new agreement for Tejas Mark-1A aircraft could be finalized as early as Thursday, coinciding with the retirement of 36 MiG-21 fighters, according to a TOI report.

The contract is seen as a significant boost to India’s fighter fleet, helping address gaps created by the phased retirement of older aircraft. The retirement of 36 MiG-21s will reduce the IAF to an all-time low of 29 fighter squadrons, with each squadron comprising 16–18 jets.

This development comes after Operation Sindoor, during which Pakistan employed Chinese-origin J-10 fighter jets armed with PL-15 missiles that have a range exceeding 200 kilometers, prompting an internal Indian Air Force assessment. The assessment revealed that even the sanctioned strength of 42.5 fighter squadrons may be insufficient to counter the coordinated and complex threats posed by adversaries.