Israel Aerospace Industries (IAI) is reportedly close to securing a major defence contract worth approximately $905.7 million (around ₹8,000 crore) to provide the Indian Air Force (IAF) with six aerial refuelling tanker aircraft. The proposed agreement involves converting Boeing 767 commercial passenger aircraft into military tankers, offering India an opportunity to strengthen its air-to-air refuelling capabilities.
According to reports, IAI has emerged as the only bidder to successfully clear the technical evaluation process under India’s tanker acquisition programme. Competing proposals from companies in Russia and Europe reportedly failed to meet the required evaluation standards. However, the contract has not yet been formally awarded and remains subject to the completion of India’s procurement process and necessary government approvals.
Under the proposed arrangement, IAI will convert six Boeing 767 aircraft into Multi-Mission Tanker Transport (MMTT) platforms. The aircraft will undergo extensive modifications, including the installation of specialised aerial refuelling systems and military equipment. Besides supporting mid-air refuelling, the converted platforms are expected to offer additional transport capabilities, making them valuable assets for the Indian Air Force.
The programme is also expected to support India’s domestic defence manufacturing ambitions. At least 30 per cent of the project work is reportedly planned for Indian companies under the government’s Make in India initiative. Hindustan Aeronautics Limited (HAL) is expected to participate as IAI’s Indian industrial partner, contributing to aircraft modifications, systems integration and other technical activities. This arrangement could create opportunities for domestic aerospace companies and strengthen India’s experience in specialised military aircraft conversion.
The proposed acquisition is particularly important as the IAF continues to face operational challenges with its existing fleet of Russian-origin Ilyushin Il-78 aerial refuelling tankers. Improving tanker availability has become an important requirement for maintaining the operational readiness of India’s fighter aircraft fleet. Additional tankers would allow combat aircraft to remain airborne for longer periods and undertake missions over greater distances without requiring frequent landings for refuelling.
The Boeing 767-based platforms could support several IAF combat aircraft, including the Rafale and Su-30MKI, by extending their operational range and mission endurance. A stronger aerial refuelling capability would also improve India’s ability to conduct sustained air operations across its extensive areas of strategic interest.
If approved, the programme is reportedly expected to see aircraft deliveries between 2028 and 2030. For IAI, the potential agreement would represent another significant defence partnership with India, further expanding cooperation between the two countries in aerospace and military technology.
The proposed $905.7 million deal reflects India’s continuing efforts to modernise its military aviation infrastructure while increasing domestic participation in major defence projects. Once officially approved and implemented, the programme could provide the Indian Air Force with an important capability upgrade and help address its long-standing requirement for a more reliable aerial refuelling fleet.