Israeli Aerospace Industries Commits to India's 30% Indigenous Content Requirement for Rs 8,000-Crore Mid-Air Refueller Contract

Israel Aerospace Industries (IAI), Israel's premier defense manufacturer, has confirmed its full commitment to meeting India's 30% 'Make in India' requirement for the Rs 8,000-crore contract to supply six mid-air refuelling aircraft.

As the sole remaining bidder in this significant defense procurement, IAI's Executive Vice President Yehuda Lahav emphasized their alignment with local content requirements, though he declined to specify where the aircraft modifications would take place.

According to reports from ANI, the Indian Air Force is poised to award this substantial contract to the Israeli government-owned firm after it emerged as the only vendor meeting all specifications.

"In any program where we consider ourselves a candidate, we are willing to comply with requirements. Hopefully, India will be the next customer," stated Lahav.

He further clarified, "We are fully aligned with local requirements, which means we are open to meeting any local content obligations. Regarding the refueller project, if there are specific requirements, we will be 100% aligned."

If awarded the contract, IAI would modify six second-hand Boeing 767 commercial aircraft, converting them into tanker aircraft for the Indian Air Force. Defense sources indicate that IAI has agreed to incorporate approximately 30% Made in India content through offsets involved in the deal.

The competitive bid process had initially included Russian and European manufacturers, but IAI emerged as the only contender meeting all requirements, particularly the mandate for 30% indigenous content on second-hand planes.

Currently, the Indian Air Force operates six Russian-origin Il-78 mid-air refuelling aircraft based in Agra, which support all fighter aircraft operations for both the Air Force and Navy.

Over the past 15 years, the Indian Air Force has made multiple unsuccessful attempts to acquire additional flight refuelling aircraft. While it has recently leased a tanker aircraft, its expanding operational requirements necessitate a larger fleet.

The Air Force is gradually phasing out legacy aircraft, with newer fleet additions capable of extended flight durations through mid-air refuelling capabilities.