Israel Aerospace Industries Set to Win ₹8,000 Crore IAF Contract for Boeing 767 Aerial Refueler Conversion

In a major boost to Indo-Israeli defense cooperation, Israel Aerospace Industries (IAI) is reportedly set to win the ₹8,000 crore (approximately $900 million) contract to convert six second-hand Boeing 767 aircraft into Multi-Role Tanker Transport (MRTT) aerial refuelers for the Indian Air Force (IAF). The deal, which is in its final stages of approval, will significantly strengthen India’s mid-air refueling capability — a critical asset for extending the operational range of fighters such as the Rafale, Su-30MKI, and Tejas Mk1A.

Why IAI Was Chosen

According to defense officials, IAI emerged as the frontrunner due to its proven expertise in aircraft conversion programs and cost efficiency compared to Western competitors. The Israeli aerospace firm has decades of experience converting Boeing 767s into MRTT platforms through its Bedek Aviation Group, which has delivered similar refueling systems to the air forces of Brazil, Colombia, and Azerbaijan.

Under the upcoming agreement, IAI will acquire six pre-owned Boeing 767 passenger jets—likely sourced from the civilian market—and convert them into full-fledged refueling aircraft equipped with advanced hose-and-drogue and boom refueling systems, mission avionics, and cargo transport configurations. The aircraft will be tailored to the IAF’s operational needs, allowing them to refuel multiple fighter types in a single sortie.

India’s Long Quest for New Tankers

This deal follows more than a decade of attempts by the IAF to modernize its refueling fleet. Currently, the service operates six Russian-origin Ilyushin Il-78MKI tankers, inducted in the early 2000s. These aircraft, based at Agra, have suffered from maintenance challenges and low availability rates, prompting repeated efforts to acquire a new generation of refuelers.

India previously evaluated and shortlisted Airbus A330 MRTT twice — once in 2009 and again in 2016 — but both tenders were cancelled due to high costs and bureaucratic hurdles. The decision to go with converted Boeing 767s from IAI reflects a shift toward a more affordable and flexible solution without compromising operational capability.

Technical Details and Advantages

The IAI 767 MRTT is capable of carrying over 90 tonnes of fuel, enabling simultaneous refueling of two fighters via wing pods and one large aircraft through the central boom. It can also carry cargo, personnel, or medical evacuation modules, making it a multi-role platform ideal for both peacetime logistics and combat support.

Key features include:

• Dual refueling systems (hose-and-drogue + boom) for compatibility with multiple aircraft types.

• Range: Over 11,000 km (with maximum fuel load).

• Cargo capacity: Around 45 tonnes.

• Crew: Two pilots plus mission operators.

• Advanced mission management suite for fuel control and coordination.

The aircraft will likely be maintained in India with IAI providing technology transfer and maintenance support to HAL or a private Indian partner, ensuring local capability development.

Strategic Implications

Once inducted, the six Boeing 767 MRTTs will dramatically enhance the IAF’s power projection across the Indian Ocean and along the northern borders. They will allow fighter aircraft to undertake long-range patrols, maritime strike missions, and rapid response operations without relying on ground-based refueling stops.

The deal also underscores the deepening defense-industrial partnership between India and Israel, which has grown steadily over the past decade. IAI has already delivered major systems to India, including Heron UAVs, Barak-8 air defense systems, and radar technologies.

Next Steps

Sources indicate that the formal contract announcement could come within the next few months, pending final cost negotiations and Cabinet Committee on Security (CCS) approval. Once signed, IAI is expected to complete the first aircraft conversion within 24–30 months, with the remaining five delivered over the following two years.

If finalized, this would mark India’s first operational use of converted commercial airliners as refueling platforms, setting a precedent for cost-effective modernization in the IAF’s support fleet.

With IAI’s proven record and India’s urgent need for reliable aerial refueling assets, the upcoming agreement could finally bring an end to the IAF’s two-decade-long search for new tankers, firmly anchoring Israel as a key partner in India’s aerospace modernization.