Israel Aerospace Industries (IAI) is emerging as the frontrunner for a $905.7 million (approximately ₹8,000 crore) Indian Air Force (IAF) contract to convert six Boeing 767 passenger aircraft into aerial refuelling tankers. The proposed deal is expected to strengthen India’s mid-air refuelling capabilities and support the country’s efforts to modernise its military aviation fleet.
According to reports in Israeli media, IAI is the only bidder whose proposal has been approved for consideration under the Indian government’s tender. Russian and European companies had also participated in the bidding process but reportedly failed to meet the evaluation criteria.
Under the proposed arrangement, IAI will convert six pre-owned Boeing 767 aircraft into military tanker and transport platforms. At least 30% of the project work is expected to be undertaken in India, in line with the government’s Make in India initiative. Hindustan Aeronautics Limited (HAL) is likely to be the Indian industrial partner, handling activities such as local systems integration, wiring and structural modifications.
Replacing India’s Ageing Tanker Fleet
The proposed acquisition is aimed at addressing the limitations of the IAF’s existing fleet of six Russian-origin Ilyushin Il-78 tanker aircraft. These aircraft have faced maintenance and operational availability challenges, affecting India’s aerial refuelling capacity.
Air-to-air refuelling allows fighter aircraft to receive fuel while airborne, extending their operational range and time in the air. The additional tanker capacity is expected to support long-range missions involving aircraft such as the Rafale and Su-30MKI.
India has explored several options to acquire new refuelling aircraft over the years, including the Airbus A330 MRTT and Boeing KC-46. However, earlier procurement efforts faced cost and technical challenges. Converting existing commercial aircraft into military tankers offers an alternative to purchasing newly manufactured platforms.
IAI-HAL Partnership and Make in India
IAI and HAL have an existing cooperation framework for converting pre-owned commercial aircraft into Multi-Mission Tanker Transport (MMTT) platforms. The partnership is expected to bring specialised conversion technology and aerospace manufacturing capabilities to India.
IAI has experience in converting commercial aircraft for cargo and military applications. Its MMTT platform uses Boeing 767 aircraft adapted for aerial refuelling and transport operations.
The proposed contract could become one of the major defence cooperation projects between India and Israel. However, the reported selection of IAI as the sole qualifying bidder does not by itself confirm that the final contract has been signed. Commercial negotiations and the required government approvals remain important steps in the procurement process.
