The Indian Air Force (IAF) is poised to sign a significant contract for 97 Tejas Mark-1A fighter jets, valued at Rs 66,500 crore, with Hindustan Aeronautics Limited (HAL). This deal is expected to be finalized as early as Thursday, just before the retirement of 36 aging MiG-21 aircraft, which will reduce the IAF's strength to an all-time low of 29 fighter squadrons. In comparison, Pakistan currently operates 25 fighter squadrons and is set to acquire at least 40 J-35A fifth-generation stealth jets from China.

China maintains a substantial lead over India, possessing more than four times the number of fighters and bombers. Following Operation Sindoor, where Pakistan utilized Chinese jets like the J-10 armed with advanced missiles, the IAF has recognized the urgent need for more aircraft. An internal assessment indicated that the IAF requires more than its authorized strength of 42.5 squadrons to effectively counter threats from adversaries.

Air Chief Marshal A P Singh has expressed concerns about the IAF's current numbers, stating that the force needs to induct at least 40 new fighters annually to remain combat-ready. The 83 Tejas Mark-1A jets ordered in February 2021 are scheduled for delivery between February 2024 and February 2028. The cabinet committee on security approved the acquisition of the additional 97 jets on August 19.

Sources indicate that the IAF insisted on not finalizing the new contract until deliveries of the initial 83 jets commenced, holding HAL accountable for the timeline. HAL has announced plans to deliver the first two Tejas jets by October. Additionally, the delivery of 99 GE-F404 turbofan engines from General Electric, contracted for Rs 5,375 crore, is reportedly stabilizing, with three engines already delivered and more expected by December.

For the new 97-jet deal, HAL will negotiate another contract with GE for 113 additional engines at a cost of $1 billion. However, the IAF has stated it will only accept the first two fighters if the ongoing trials of advanced missiles and bombs are successfully completed and certified.