AUGUST 20258GOVERNMENT APPROVES MAJOR DEAL FOR TEJAS MK1A FIGHTER JETSPOSCO AND JSW STEEL TO EXPLORE 6 MTPA INTEGRATED STEEL PLANT IN INDIAIn a major leg-up for the domestic defence manufacturing ecosystem in the country, and the 'Make in India' program of Prime Minister Narendra Modi, the government on Tuesday approved a deal worth about Rs 62,000 crore to procure 97 Tejas MK1A fighter jets for the Indian Air Force (IAF).POSCO Group from South Korea, a top company in making steel, and JSW Steel, one of the big steel makers in India, have signed a deal to work on building a big steel plant in India that can make 6 million tonnes of steel each year.This deal comes after a past agreement in October 2024 and sets out the plan for a 50:50 shared business. India's domestically produced Tejas Mk-1A single-engine multirole fighter aircraft is built to perform air defense, maritime reconnaissance, and strike missions in high-threat air environments. This decision represents an important movement towards modernizing the IAF's fleet and enhancing the country's defence self-reliance. This acquisition constitutes the second significant order for the Tejas MK1A, following an earlier February 2021 order for 83 jets approximately worth Rs. 48,000 crore. With this latest order, the IAF will have 180 Tejas MK1A fighters ordered overall, securing the use of domestic aircraft in the country's air defense policy. The IAF's outdated fleet of MiG-21s, which are currently being phased out, is supposed to be replaced with the new aircraft. It is anticipated that deliveries of the 97 planes will start in 2028 and be finished by 2031.As per government sources, the Tejas MK1A jets are more than 65 per cent indigenous content, consistent with the government's "Make in India" and "Atmanirbhar Bharat" (Self-Reliant India) policies to lessen reliance on foreign sources and develop a strong domestic defence ecosystem. The signing event was in Mumbai with big bosses from both companies, Lee Ju-tae, Representative Director and President of POSCO and Jayant Acharya, Joint Managing Director of JSW Steel.Next, both firms will look closely at where to put the plant, how much to spend, and what they need. Odisha, rich in minerals and good for transport, is a top spot they're looking at.Lee Ju-tae said, "India is key to the future of steel needs around the world. Our work with JSW is founded on trust and a shared long-term goal. This move shows our aim to help India grow its industries and brings long-term value to both groups."Jayant Acharya noted, "This tie-up brings together POSCO's top steel tech and JSW's strong track of getting things done and big local reach. The planned project fits India's goal of self-reliance and will set up a world-class hub for making goods for both local and overseas markets."This deal is a big step in making the bond between POSCO and JSW Steel stronger, helping India change its industries and become a top competitor in steel on the world stage. TOP STORIESTOP STORIESTOP STORIES
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