…IAI would convert ex-Boeing 767 passenger jets into multi-mission tankers, with HAL expected to carry out part of the work in India
India is nearing a defence agreement worth about $905.7 million with Israel Aerospace Industries for six aerial refuelling aircraft, according to reports on the proposed programme, in a move aimed at replacing an ageing and unreliable tanker fleet and extending the reach of the Indian Air Force’s frontline fighters.
Under the plan, IAI would acquire pre-owned Boeing 767 passenger aircraft and convert them into Multi-Mission Tanker Transport (MMTT) platforms. Hindustan Aeronautics Limited is expected to participate in the programme, with at least 30% of the conversion work contracted to be performed in India, including local systems integration, wiring, structural updates and maintenance support. Deliveries are projected between 2028 and 2030.
IAI is reported to be the sole qualifying bidder after proposals from Russian and European suppliers failed to meet the IAF’s evaluation criteria. The contract, if signed, would be one of the largest defence deals between India and Israel. Official confirmation from the Ministry of Defence, the IAF, IAI or HAL was not included in the reports, and the figures could not be independently verified.
The IAF’s need is urgent. It operates six Russian-origin Ilyushin Il-78MKI tankers inducted around 2003-04. A 2017 Comptroller and Auditor General report found that average serviceability of the fleet between 2010 and 2016 was just 49%, against a desired level of 70%, with persistent problems over spare parts and refuelling pods. The shortages have limited the IAF’s ability to sustain refuelling operations and support long-range missions.
The new tankers would be capable of refuelling fighters such as the Rafale and Su-30MKI, extending their operational range and endurance. The multi-mission design also allows rapid reconfiguration for strategic airlift, cargo and troop transport, and medical evacuation, giving the IAF greater flexibility.
The proposed deal follows nearly two decades of failed attempts to procure new tankers. A 2006 request for proposals led to the selection of the Airbus A330 MRTT in 2009, but the deal was scrapped in 2010 over pricing. A fresh tender in 2013 again chose the A330 MRTT, but that contract was cancelled in 2016 over cost and economic viability. Buying new purpose-built tankers such as the Boeing KC-46 Pegasus was considered prohibitively expensive, at roughly $160 million per aircraft, and would offer less industrial offset to Indian companies.
The conversion route is seen as a lower-cost, proven alternative. IAI’s Bedek Aviation Group has extensive experience in passenger-to-tanker conversions, and the Boeing 767 MMTT has already been delivered to Colombia. For India, the programme also supports the Make in India initiative through HAL’s involvement.
The reported agreement is still subject to formal announcement and contract signature. If concluded, it would mark a significant step in closing a long-standing capability gap for the IAF and deepening India-Israel defence ties.