India Allocates $1 Billion to Replace Russian Il-78MKI Refueling Aircraft

On December 29, 2025, India decided on a series of acquisitions worth about $9.48 billion to strengthen the capabilities of the Indian Armed Forces.

Among the key decisions is the purchase of six refueling aircraft for the Indian Air Force worth $1.08 billion, Indian Defense News reports.

Israel Aerospace Industries (IAI) in partnership with Hindustan Aeronautics Limited (HAL) has been appointed as the project executor.

The fleet of six Il-78MKI refueling aircraft, introduced more than twenty years ago, has exhausted its service life. It is no longer able to meet the current requirements for long-range operations of the Rafale, Su-30MKI and indigenous Tejas variants.

The IAI plans to modify six used Boeing 767s into MMTT multirole refueling aircraft.

They will be equipped with modern aerial refueling systems, electro-optical systems for operation in all weather conditions and compatibility with both NATO and hose-cone refueling methods.

In addition to the main refueling function, the aircraft will be able to carry out cargo and passenger transportation tasks, as well as reconnaissance and surveillance missions. An important condition is the 30% localization level, which will provide HAL with integration work and create a base for maintenance and repair in India.