*

Deal part of efforts to modernise India's military

*

Tejas fighters critical to shore up air force squadrons

*

India plans follow-on order with GE for engines

(Adds details; paragraphs 1-10)

By Shivam Patel and Hritam Mukherjee

NEW DELHI, Sept 25 (Reuters) - India signed a deal worth

623.70 billion rupees ($7.03 billion) on Thursday to buy

indigenous fighter aircraft from state warplane maker Hindustan

Aeronautics Ltd (HAL) in the effort to modernise its

armed forces.

The acquisition comes in the face of the growing military

strength and influence in South Asia of neighbour China,

including defence ties with India's arch-rival Pakistan.

The order for 97 home-grown fighters of the Tejas Mk-1A

variety, envisages completion of deliveries over a span of six

years from financial year 2027-28, the defence ministry said in

a statement.

"The supply of these aircraft by HAL would enhance

operational capability of the Indian Air Force to continue their

unhindered operations and strengthen defence preparedness,"

Defence Minister Rajnath Singh said in a post on X.

The news came a day ahead of the last flight of the Indian

Air Force's Russian-origin MiG-21 fighters.

After that India's fleet of mainly ex-Soviet fighter

aircraft will shrink to 29 from an approved strength of 42, a

matter of frustration for officials after a bitter military

conflict with Pakistan in May.

Thursday's deal is a follow-on order for the advanced Mk-1A

version of the Tejas group of fighters, powered by General

Electric ( GE ) engines.

The government signed a deal with HAL in 2021 for 83 such

aircraft but delivery of that order has yet to begin, as the

warplane maker blamed GE for being slow in providing the

engines.

GE has said the delay followed challenges in restarting the

production line and re-engaging global supply chains for the

engine after the COVID-19 pandemic.

It delivered the first engine for the Mk-1A fighter in March

this year and Indian officials have said they expect production

and deliveries to stabilise in the current fiscal year.

Thursday's order would take India's total Tejas fleet to

220, and officials expect to sign a follow-on deal with GE for

additional engines.

($1=88.6880 Indian rupees)