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India Greenlights $1.1-Billion Boeing 767 Tanker Procurement

India’s Ministry of Defence has approved the procurement of six Boeing 767-based multirole aerial refuelling aircraft (MRTT), aimed at enhancing the operational reach of the Indian Air Force.

Valued at an estimated 90 billion Indian rupees ($1.1 billion), the program will see Israel Aerospace Industries (IAI), in partnership with India’s state-owned Hindustan Aeronautics Limited (HAL), convert six pre-owned Boeing 767 airliners into aerial refuelling aircraft.

IAI emerged as the sole remaining bidder in the competition after European and Russian contenders reportedly failed to meet India’s technical and local production requirements. A final contract signing is expected by March, according to The Aviationist.

Replacement for Aging Fleet

The new aircraft are intended to replace the Indian Air Force’s aging fleet of six Ilyushin Il-78MKI tankers, whose persistent operational and maintenance challenges have kept availability below expected levels.

According to one estimate, fleet serviceability between 2010 and 2016 fell below 50 percent against a benchmark of 70 percent.

Procured in 2003, the Russian-origin aircraft have reached the end of their effective service life and are increasingly unable to support the long-range operational requirements of frontline aircraft such as the Rafale, Su-30MKI, and indigenous Tejas variants, according to intelligence and productivity platform GlobalData.

A report by India’s Comptroller and Auditor General highlighted multiple shortcomings, including faulty refuelling pods, inadequate repair facilities, and weak maintenance support from the manufacturer.

Reacting to the development, aerospace analyst at GlobalData Harpreet Sidhu said: “The selection of a converted Boeing 767-based MRTT reflects a pragmatic and capability-driven approach by India.

“The Il-78 fleet, now over two decades old, has struggled to meet the endurance, availability, and interoperability demands of modern air operations. Replacing it with a modern alternative will improve mission readiness while reducing long-term sustainment risks.”

Sidhu added: “While the aircraft itself is of foreign origin, the structured involvement of HAL is strategically important as it allows for integration of indigenous systems and seamless MRO during the operational lifespan of the aircraft fleet.”

Indian Air Force’s Expansion

The procurement comes as India moves to significantly expand its fighter aircraft inventory with a mix of indigenous and foreign-made platforms. 

According to GlobalData market projections, the country is expected to invest around $82.6 billion in fixed-wing aircraft over the next decade.

The Defence Acquisition Council recently cleared procurement of 114 multirole fighter aircraft at an estimated cost of 3.25 trillion Indian rupees ($36 billion).

Earlier, the Ministry of Defence contracted HAL for the acquisition of 97 additional indigenously built Tejas Mk-1A Light Combat Aircraft for the Indian Air Force under a deal valued at approximately $7 billion.

“Aerial refuelling aircraft are force multipliers rather than frontline platforms, but their impact on airpower projection is profound,” Sidhu said. 

“By modernizing this capability, India enhances effective range, endurance, and deterrence, enabling frontline aircraft to operate deeper into contested airspace beyond its terrestrial borders.”

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