Air Force, Israeli firm likely to sign Rs 8,000 crore deal for mid-air refuellers

The Indian Air Force (IAF) is likely to sign a deal worth around Rs 8,000 crore to procure six mid-air refuelling aircraft from Israel Aircraft Industries (IAI), a government-owned company that has emerged as the single vendor for the project.

Defence sources told India Today that IAI is expected to convert six pre-owned Boeing 767 commercial aircraft into aerial tankers before delivering them to the IAF.

The Israeli firm became the sole contender after a competitive bidding process in which it agreed to meet the requirement of about 30% Made-in-India content through offsets.

Russian and European firms had also participated initially but failed to meet key conditions, including the mandate for 30% indigenous content in second-hand aircraft, sources said.

The IAF currently operates six Russian-origin Il-78 refuelling aircraft, stationed at Agra, which support various fighter aircraft of both the Air Force and the Navy. The service has been trying for over 15 years to acquire six additional refuelling planes, but earlier attempts fell through for various reasons.

- Ends