The Israeli state defense concern Aviation Industry remained the only participant in the tender for the supply of 6 refueling aircraft announced by the Indian Ministry of Defense.
The remaining applications submitted by Russian and European companies turned out to not comply with the terms of the tender.
The transaction value is about $910 million.
The Air Force currently operates six IL-78MKI tanker aircraft, which were purchased from Russia in 2003-04. These aircraft are outdated and difficult to maintain. The Russian-Ukrainian war also made it difficult to obtain spare parts.
As part of the deal, Aviation Industry will purchase six old Boeing 767 passenger aircraft and convert them into multi-purpose aircraft. These upgraded aircraft will be able to perform multiple missions – refueling other aircraft in the air, transporting troops and equipment, and, if necessary, participating in reconnaissance missions.
The Israeli concern has almost 40 years of experience in the construction and conversion of such aircraft and has completed similar projects for 12 different countries.
About 30% of this deal will be done under the Made in India programme, which means Indian companies including Hindustan Aeronautics Limited (HAL) will be involved.
The deal is expected to be finalized by the end of 2025.