What Happened
- The Defence Acquisition Board (DAB) cleared the proposal to procure 60 medium transport aircraft (MTA) for the Indian Air Force (IAF) at an estimated cost of approximately ₹1 lakh crore (₹1,00,000 crore)
- Of the 60 aircraft, 12 will be procured in flyaway condition for rapid induction while the remaining 48 will be manufactured in India — following the 'Buy and Make' category under the Defence Acquisition Procedure (DAP)-2020
- The programme is a key component of India's Atmanirbhar Bharat defence indigenisation drive, mandating at least 50% indigenous content in the manufacturing phase
- Prime contenders include Brazil's Embraer C-390 Millennium (partnered with Mahindra Defence Systems) and the United States' Lockheed Martin C-130J Super Hercules (partnered with Tata Advanced Systems Limited)
- The proposal now awaits approval from the Defence Acquisition Council (DAC), chaired by the Defence Minister, and subsequently the Cabinet Committee on Security (CCS), chaired by the Prime Minister
- The IAF currently operates the ageing Avro HS-748 and older AN-32 transport aircraft, both requiring replacement; the MTA programme addresses this critical capability gap
- This decision comes as the IAF's transport fleet has faced operational pressure during the West Asia crisis, disaster relief operations, and logistical support to remote border posts
Static Topic Bridges
India's Defence Acquisition Architecture: DAB, DAC, and CCS
India's defence procurement follows a structured multi-tier approval process designed to ensure both operational necessity and financial accountability. The Defence Acquisition Board (DAB) is the entry-level body that examines proposals for procurement of new platforms, reviews technical parameters, and recommends feasibility. The Defence Acquisition Council (DAC), chaired by the Defence Minister, is the highest decision-making body for defence procurement below the Cabinet, providing "Acceptance of Necessity" (AoN) — the formal green light for procurement. The Cabinet Committee on Security (CCS), chaired by the Prime Minister, approves all proposals above a specified financial threshold, currently ₹500 crore.
- DAB (Defence Acquisition Board): examines feasibility, technical parameters; recommends to DAC
- DAC (Defence Acquisition Council): chaired by Defence Minister; grants Acceptance of Necessity (AoN); highest MoD procurement body
- CCS (Cabinet Committee on Security): chaired by PM; final approval for large strategic procurements
- Members of CCS: PM, Home Minister, Defence Minister, Finance Minister, External Affairs Minister
- DAP-2020 (Defence Acquisition Procedure): replaced DPP-2016; aligned with Atmanirbhar Bharat
- Effective date of DAP-2020: October 1, 2020
- DAP-2020 categories: Buy (Indian-IDDM), Buy (Indian), Buy and Make (Indian), Buy (Global-Manufacture in India), Buy (Global)
Connection to this news: The DAB clearance is the first formal step in the procurement pipeline — the ₹1 lakh crore programme must still clear DAC (for AoN) and CCS before requests for proposal are issued to competing manufacturers.
Defence Acquisition Procedure 2020 and Atmanirbhar Bharat in Defence
The Defence Acquisition Procedure 2020 (DAP-2020) is India's roadmap for achieving self-reliance in defence manufacturing under the Atmanirbhar Bharat Abhiyan. It prioritises domestic procurement through a hierarchy of categories — the highest preference goes to "Buy (Indian-IDDM)" requiring 50–60% indigenous content; "Buy and Make (Indian)" mandates technology transfer and domestic manufacturing of at least 50% of ordered quantities. The DAP-2020 introduced a positive indigenisation list (now comprising hundreds of platforms and components) — items on this list cannot be imported, compelling domestic development or licensed manufacture.
- DAP-2020 aligned with Atmanirbhar Bharat; effective from October 1, 2020
- "Buy and Make (Indian)": allows initial purchase of some units in flyaway condition; remainder manufactured in India with technology transfer
- Minimum indigenous content in manufacturing phase: 50%
- Defence indigenisation list (Positive Indigenisation List): over 500 items across components and platforms barred from import (as of 2025)
- India's defence exports target: ₹50,000 crore by 2025 (government target set in 2020); achieved ₹21,083 crore in 2023-24
- Defence FDI cap: raised from 49% to 74% through automatic route (100% with government approval) under DAP-2020 reforms
- Make in India in defence: iDEX (Innovations for Defence Excellence) programme supports startups in defence tech
Connection to this news: The MTA deal's "Buy and Make" structure — 12 flyaway + 48 manufactured in India — directly embodies DAP-2020's Atmanirbhar framework, ensuring that the bulk of the ₹1 lakh crore investment supports domestic aerospace manufacturing and technology transfer.
IAF's Transport Fleet: Strategic Necessity and Modernisation Imperatives
A capable airlift fleet is a force multiplier for any military, enabling rapid troop deployment, casualty evacuation, disaster relief, and logistics to remote forward operating bases. The IAF's current medium transport fleet is centred on the ageing Avro HS-748 (inducted in the 1960s, now beyond design life) and the AN-32 (inducted from the 1980s; Ukrainian-origin, facing spares challenges since 2022). The gap in medium-lift capability has been felt during the Galwan crisis (2020) logistics surge, multiple disaster relief operations, and the ongoing West Asia crisis where civilian evacuation planning requires dedicated air assets.
- Current IAF medium transport aircraft: Avro HS-748 (being retired), AN-32 (fleet ageing; spares constrained after Russia-Ukraine war disrupted Ukrainian supply chain)
- IAF's total fixed-wing transport fleet also includes C-17 Globemaster III (heavy) and C-130J Super Hercules (medium-heavy) — but quantities are limited
- MTA requirement: 60 aircraft to replace and expand medium-lift capability
- Contenders: Embraer C-390 Millennium (Brazil, partnered with Mahindra) and Lockheed Martin C-130J Super Hercules (USA, partnered with TASL)
- The programme will create a domestic aerospace manufacturing ecosystem — benefiting HAL, private defence majors (Mahindra, Tata), and ancillary supply chain
- IAF's Integrated Air Command and Control System (IACCS) requires networked transport assets for rapid response in multi-theatre scenarios
Connection to this news: The DAB clearance of the ₹1 lakh crore MTA deal addresses an urgent operational capability gap while simultaneously advancing Atmanirbhar Bharat in aerospace manufacturing — a dual strategic objective of operational readiness and industrial self-reliance.
Key Facts & Data
- Deal value: approximately ₹1 lakh crore (₹1,00,000 crore)
- Aircraft quantity: 60 medium transport aircraft (MTA)
- Split: 12 flyaway + 48 manufactured in India (Buy and Make category, DAP-2020)
- Minimum indigenous content in manufacturing phase: 50%
- Contenders: Embraer C-390 Millennium (Brazil / Mahindra Defence), Lockheed Martin C-130J Super Hercules (USA / Tata Advanced Systems)
- Procurement pipeline: DAB cleared → DAC (AoN) → CCS → RFP issuance → contract
- Current IAF medium transport: Avro HS-748 (retiring), AN-32 (ageing)
- DAP-2020 effective date: October 1, 2020
- Defence FDI: up to 74% automatic route; 100% with government approval
- India's defence exports in 2023-24: ₹21,083 crore
- CCS members: PM, Home Minister, Defence Minister, Finance Minister, External Affairs Minister
- Related recent approval: DAC also cleared ₹3.60 lakh crore defence capital acquisition proposals in February 2026 (including Rafale-M jets for Navy, P-8I maritime patrol aircraft)