The Russian-origin aircraft will feature 62.6 per cent domestic content, it said.

These jets are now manufactured by the HAL under an intergovernmental framework.

"In a major boost to the 'Aatmanirbhar Bharat' initiative of the government, a contract for procurement of 12 Su-30MKI aircraft along with associated equipment has been signed between the Ministry of Defence and the Hindustan Aeronautics Ltd today," the defence ministry said.

It said the cost of the procurement will be around Rs 13,500 crore inclusive of taxes and duties.

"The aircraft would have an indigenous content of 62.6 per cent, enhanced due to indigenisation of many components to be manufactured by Indian defence industry," it said.

The jets would be manufactured at Nasik division of HAL.

"The supply of these aircraft would enhance the operational capability of the Indian Air Force and strengthen defence preparedness of the country," the ministry said in a statement.

Su-30MKI is a two-seater multi-role long-range fighter jet developed by Russian aircraft manufacturer Sukhoi. It is now built under licence by HAL for the Indian Air Force (IAF).