The Indian Air Force is close to finalising an ₹8,000 crore deal with Israel Aircraft Industries (IAI) to acquire six mid-air refuelling aircraft, according to defence sources. The Israeli state-owned company is expected to convert six pre-owned Boeing 767 commercial planes into aerial tankers before supplying them to India.
IAI has emerged as the sole contender after other Russian and European firms dropped out for failing to meet key requirements, including the mandate for 30 percent indigenous, or Made in India, content. The project aligns with the government’s push for greater local participation in defence manufacturing through offsets.
The Air Force currently operates six Russian-origin Il-78 tankers based in Agra, which support fighter and naval aircraft during long-range missions. However, the fleet is aging and insufficient for India’s growing operational needs.
Over the past 15 years, multiple efforts to procure additional refuelling aircraft have stalled due to cost and technical hurdles. The Air Force has temporarily wet-leased one tanker to bridge the gap but requires more aircraft to support its modernised fleet capable of extended missions.
If finalised, this agreement with IAI will significantly boost India’s aerial refuelling capacity, enhancing the endurance and reach of its fighter jets across the region.
