The Indian Air Force (IAF) is close to finalising a major defence acquisition deal valued at approximately ₹8,000 crore for the purchase of six mid-air refuelling aircraft from Israel Aircraft Industries (IAI), a state-owned aerospace and defence company. According to defence sources cited by India Today, the Israeli firm will modify six pre-owned Boeing 767 commercial jets into advanced aerial refuelling tankers before handing them over to the IAF.
IAI emerged as the sole qualified vendor after a rigorous and lengthy selection process. The company reportedly agreed to fulfil the requirement of incorporating nearly 30% Made-in-India components through offset obligations, making it compliant with India’s defence procurement policies. This commitment to local participation is expected to strengthen India’s aerospace ecosystem by involving domestic firms in manufacturing, integration, and maintenance work associated with the aircraft.
Initially, several Russian and European defence contractors were also in the race to supply the refuelling aircraft. However, they were eliminated during the evaluation phase as they failed to meet key contractual and technical conditions, particularly the stipulation for 30% indigenous content in second-hand aircraft. The offset clause proved to be a decisive factor, narrowing the field to IAI as the only compliant contender.
At present, the IAF operates a fleet of six Russian-made Ilyushin Il-78 aerial refuelling aircraft based in Agra. These aircraft play a crucial role in extending the operational range and endurance of India’s fighter jets, supporting both Air Force and Naval aviation missions. However, the existing fleet has faced issues related to ageing systems, maintenance challenges, and limited availability due to serviceability concerns.
The Air Force has been pursuing the acquisition of additional refuelling tankers for over 15 years. Previous attempts, including negotiations with both European and Russian firms, were abandoned due to high costs, logistical hurdles, or failure to meet technical and financial criteria. With the IAI deal now nearing completion, the induction of these modified Boeing 767 tankers is expected to significantly enhance India’s aerial refuelling capability, allowing longer-range combat and transport operations while reducing dependency on ground-based fuel logistics.
Once delivered, the new fleet will mark a major technological upgrade for the IAF’s mid-air refuelling capacity, bringing it closer in line with global standards adopted by advanced air forces such as those of the United States and Israel.
