At $43 mn each, Hindustan Aeronautics' Tejas Mark 1A seeks export market

At Rs 315 crore ($43 million) per fighter, the Tejas Mark 1A would be a viable competitor in the international market for light fighters. It would be less so if taxes took up its cost to Rs 385 crore

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Competitors, such as the Sino-Pakistan JF-17 Thunder, are cheaper with a unit cost of $25-30 million. However, the Tejas Mark 1A outperforms them in avionics and weaponry

Ajai Shukla New Delhi

5 min read Last Updated : Jan 18 2021 | 09:20 AM IST

On Wednesday, the Ministry of Defence (MoD) announced the Union Cabinet’s clearance for Hindustan Aeronautics (HAL) to build 83 Tejas Mark 1A light combat aircraft (LCA) for Rs 45,696 crore. This raised concerns that the improved version of the current Tejas Mark 1 fighter would cost a daunting Rs 550 crore each.

However, senior government sources have clarified to Business Standard that each Tejas Mark 1A will cost no more than Rs 315 crore to build, with the total manufacturing cost adding up to Rs 26,145 crore.

The balance of the Cabinet clearance includes allocations for tax and for maintenance and support infrastructure in the two operational air bases that will be home to the four squadrons of the Tejas Mark