The Indian government has cleared the procurement of six Boeing 767-based aerial refuelling aircraft, marking a major upgrade to the Indian Air Force’s air-to-air refuelling capability. Approved by the Ministry of Defence, the deal is estimated at ₹90 billion ($1.1 billion) and is aimed at extending the operational range and endurance of India’s frontline fighter fleet.
The conversion work will be carried out by Israel Aerospace Industries (IAI) in partnership with Hindustan Aeronautics Limited (HAL), with six used Boeing 767 airframes set to be modified into multirole tanker aircraft. IAI reportedly emerged as the only remaining bidder after rival European and Russian offerings failed to satisfy India’s technical criteria and local manufacturing obligations. Defence officials anticipate the contract to be finalized by early 2026.
These new tankers are expected to replace the IAF’s Il-78MKI fleet, which has long faced reliability and sustainment challenges. Serviceability rates dropped below 50 percent for several years, significantly limiting operational availability. A report by India’s Comptroller and Auditor General highlighted critical deficiencies, including malfunctioning refuelling pods, insufficient repair infrastructure, and weak manufacturer support, further underscoring the need for replacement.
The tanker acquisition comes amid a sweeping modernization drive within India’s air force. GlobalData estimates India will spend over $82 billion on fixed-wing aircraft in the coming decade as it expands its fighter inventory through both indigenous and foreign programs. Recent approvals include 114 new multirole fighters and a major HAL contract for additional Tejas Mk-1A aircraft. Experts emphasize that modern aerial refuelling assets act as strategic enablers, allowing combat aircraft to project power deeper into contested regions while enhancing India’s overall deterrence posture.
