New Delhi: Indian Air Force (IAF) is close to finalising a deal worth about Rs 8,000 crore with Israel Aircraft Industries (IAI) to boost its mid-air refuelling capacity, according to a report by ANI.

Under the proposal, the Israeli government-owned firm would convert six pre-owned Boeing 767 passenger planes into aerial tankers before delivering them to the IAF.

IAI emerged as the sole qualified bidder after other competitors, including Russian and European manufacturers, failed to meet the project’s requirements for indigenous participation and technical specifications. The company has reportedly agreed to ensure around 30 percent Made-in-India content through offsets.

The IAF currently operates six Russian-origin Il-78 refuelling aircraft based in Agra, which support long-range operations for both Air Force and Navy fighter squadrons. However, previous efforts over the past decade to procure additional tanker aircraft were delayed due to financial and procedural hurdles.

According to reports and recent defence assessments, the planned acquisition will enhance India’s strategic reach by allowing fighter jets — including the Rafale and Su-30MKI — to undertake extended missions without frequent refuelling stops. The expanded tanker fleet is also expected to play a key role in regional security and joint operations.

The 30 percent local manufacturing clause could open new opportunities for Indian aerospace firms in maintenance, systems integration, and logistics support.

Once inducted, the new aircraft are likely to provide the IAF with greater endurance during combat patrols, humanitarian missions, and multinational exercises.