According to Globes, citing Indian media, the deal is worth $905.7 million. The local partner is expected to be Hindustan Aeronautics (HAL). India has not yet formally selected the bid.
The Indian Air Force currently operates six Ilyushin Il-78 tankers, which fall short of its needs in both quality and quantity. Earlier attempts to buy new tankers stalled over costs and technical challenges, so India is looking at converting existing aircraft and is leasing tankers in the meantime.
IAI specializes in converting passenger jets into freighters and completed its first Boeing 777 conversion in September 2025. The deal would be one of the largest between Israel and India; the largest so far was the 2017 sale of Barak 8 (MRSAM) systems for about $1.6 billion. According to SIPRI data, about 29% of Israel's defense exports in 2021–2025 went to India.