Hindustan Aeronautics Limited (HAL) has issued a clarification to the NSE and BSE exchanges regarding the procurement of 97 Tejas Fighter Jets for the Indian Air Force (IAF). HAL emphasizes that only a Request for Proposal (RFP) has been issued by the Ministry of Defence in April 2024, while a formal contract is yet to be signed.
The process began in November 2023 when the Defence Acquisition Council (DAC) granted Acceptance of Necessity (AON) for the procurement of LCA Tejas MK1A aircraft from HAL. This approval was reported to the stock exchanges on November 30th, 2023.
Subsequently, HAL received a Request for Proposal (RFP) for 97 LCA Tejas MK1A aircraft in April 2024. HAL will submit price bids, after which contract negotiations will take place with the IAF. The final terms and financial impact of the deal will be finalized at the conclusion of these negotiations.
HAL also notes that recent news headlines regarding this procurement may have overstated the current status of the agreement. The company clarifies that it has only received an RFP and a response is yet to be submitted.
