Talking to reporters here in his home district East Godavari, he said the Defence Ministry has sanctioned over Rs 40,000 crore for the mega deal.
The ministry had shortlisted the European Eurofighter and the French Dassault Rafale for the 126 Medium-Multirole Combat Aircraft (M-MRCA) deal.
Raju said he along with a five-member delegation recently visited Paris and held talks with the French officials over defence matters and other issues of mutual concern.
"Our talks mainly concentrated on the purchase of 126 fight planes," he said.
The minister said he would be attending a business conclave being organised in California by the Telugu Association of North America (TANA) later this week.