HAL Proposes Shift to Nasik Facility for AMCA's Public-Private SPV Production Model

India's ambitious AMCA (Advanced Medium Combat Aircraft) program, designed to propel the nation's defense capabilities into the realm of 5th-generation fighters, has gained significant momentum with government approval for development.

Hindustan Aeronautics Limited (HAL), the state-owned aerospace giant, will spearhead the initial production phase, building prototypes and pre-production aircraft.

Public-Private Partnership for Long-Term Production​

The long-term manufacturing strategy for the AMCA centers on a Special Purpose Vehicle (SPV) model. This SPV will see a private sector company hold a majority stake, while HAL retains a minority position.

The goal is to harness the combined expertise of both the public and private sectors to ensure the AMCA's efficient and cost-effective production.

Potential Change in Manufacturing Site​

A potential shift in strategy has emerged regarding the AMCA's manufacturing facility.

While earlier plans centered on a new joint venture facility in Coimbatore under the Tamil Nadu Defence Industrial Corridor, HAL may now offer its existing facilities in Nasik to the private sector partner.

These facilities are currently undergoing upgrades to support Tejas Mk1A production.

Upgrading vs. New Builds: Considerations​

The reasons behind this potential change aren't fully defined. It's possible that upgrading the Nasik facilities could be faster and more cost-effective than building an entirely new plant in Coimbatore.

Additionally, Nasik's existing aerospace ecosystem could provide an advantage for AMCA production.

Milestone Approval and the Road Ahead​

The government's green light for the AMCA program is a significant step forward.

Whether a new facility is ultimately built or existing infrastructure is repurposed, the partnership between HAL and a private sector company will be essential.

This collaboration aims to successfully develop and deploy the AMCA, positioning India as a leading force in the global aerospace industry.

 

[sanket]

Private sector too has to Invest , they just interested in profits.if India is Going to become Atmanirbhar in Aero-Sector. Pvt can also involve in MRO Facility this is another opportunity.

 

[venkat]

Starting with hal means Amca is dead

 

[Apocalypse gupta]

Going for existing facility will be much cheaper and faster. But then how is private sector going to maintain control using its majority stake if HAL facility is being used. It is good initiative to go for public private partnership, but how will it work?

 

[Ajath]

Hope the stakeholders gets going now that CCS has greenlighted the project.

 

[Sivasankar]

Lot of talk on AMCA. High time to get to work.

 

[nakul1307]

Why are Tata, Adani not contributing here if they are so nationalist

 

[NSR]

Where is the space?

It will be manufacturing Tejas IA, Tejas Mk2, TEDBF, and of course AMCA in same factory space.
Not possible without private companies participation at all.

HAL already bit more than it can bite and chew at the same time.

 

[Instant Karma]

Private sector too has to Invest , they just interested in profits.if India is Going to become Atmanirbhar in Aero-Sector. Pvt can also involve in MRO Facility this is another opportunity.

Private sector companies are not interested. They want readymade products just like C 295 by TATA and M4 by kalyani and K9 by L&T. They only want to assemble and do screwdriving jobs. They don't have the mental capacity and strength to do such technological advanced projects.

Only HAL can do it. Instead of waiting for 5 years to call the private sector companies, government should have allowed HAL to start work on the project. HAL world have already started serial production of AMCA.

 

[CCPSmasher]

Do you want your project in eternity? Well, then you go for HAL

 

[Instant Karma]

Where is the space?

It will be manufacturing Tejas IA, Tejas Mk2, TEDBF, and of course AMCA in same factory space.
Not possible without private companies participation at all.

HAL already bit more than it can bite and chew at the same time.

HAL has huge land in odisha sunabeda where it is manufacturing Mig and sukhoi engines. It has 8200 acres of land in odisha. That much land is sufficient to build a plant that could manufacture A380 or Boeing 777 or AN 224.

It seems that you don't know anything about HAL. HAL is a Ocean in itself and TATA, L&T, Adani, are small ponds as compared to HAL.

 

[Instant Karma]

Why are Tata, Adani not contributing here if they are so nationalist

They are fake nationalists.

 

[Anant]

Why are Tata, Adani not contributing here if they are so nationalist

Give them a guarantee of orders and explain the profit margins, diversification benefits, supply chain partner conditions, etc.

They won't partner simply based on nationalism. They have stakeholders to answer to.

 

[ABHIJIT APSINGIKAR]

Private sector companies are not interested. They want readymade products just like C 295 by TATA and M4 by kalyani and K9 by L&T. They only want to assemble and do screwdriving jobs. They don't have the mental capacity and strength to do such technological advanced projects.

Only HAL can do it. Instead of waiting for 5 years to call the private sector companies, government should have allowed HAL to start work on the project. HAL world have already started serial production of AMCA.

Are u serious? HAL had all the freedom with LCA MK2 and were originally scheduled to roll out the prototype in 2023 but that later turned to 2024 and then to 2025. Similarly, they were originally slated to start test trials by 2025 but now they are likely to only commence in 2027. They had a very narrow window of opportunity where the induction of LCA MK2 made any pragmatic sense. Yet they blew it spectacularly. Its been painfully obvious for industry analysts for a while that the AMCA program has been delayed beyond measure and even the AMCA MK1, which is expected to be a 4-4.5 generation fighter will not see service anytime before 2037-40.

 

[Instant Karma]

Give them a guarantee of orders and explain the profit margins, diversification benefits, supply chain partner conditions, etc.

They won't partner simply based on nationalism. They have stakeholders to answer to.

They only want easy money without any hardwork.

 

[ABHIJIT APSINGIKAR]

Starting with hal means Amca is dead

U cant kill something that was never alive to begin with. When was the project alive and lively moving?

 

[Instant Karma]

Are u serious? HAL had all the freedom with LCA MK2 and were originally scheduled to roll out the prototype in 2023 but that later turned to 2024 and then to 2025. Similarly, they were originally slated to start test trials by 2025 but now they are likely to only commence in 2027. They had a very narrow window of opportunity where the induction of LCA MK2 made any pragmatic sense. Yet they blew it spectacularly. Its been painfully obvious for industry analysts for a while that the AMCA program has been delayed beyond measure and even the AMCA MK1, which is expected to be a 4-4.5 generation fighter will not see service anytime before 2037-40.

HAL had no freedom. First, it was under pressure of privatisation by the government due to lobbying by the private sector companies. Than government withdraw its cash reserves and HAL had to take loans from SBI to pay salaries. Than there was fight between HAL, ADA and DRDO over the design changes made by HAL on Tejas.
Then there was pressure from government to hand over the manufacturing of Tejas fighters parts to private sector companies which delayed the Tejas programme by 5 years. Those private sector companies selected to manufacturing of parts of Tejas were to be trained and handfed by HAL at its own cost. Technology transferred to private companies.
The parts manufactured by the private sector companies were not up to the mark and HAL had to manufacture them in house.

 

[Frank]

Why screw driver kings Adani, Ambani, TATA, Mahindra, LT not ready for SPV partner???

even after so many sweet deals from Gov they wont invest 1 rs in RD???

 

[Frank]

HAL had no freedom. First, it was under pressure of privatisation by the government due to lobbying by the private sector companies. Than government withdraw its cash reserves and HAL had to take loans from SBI to pay salaries. Than there was fight between HAL, ADA and DRDO over the design changes made by HAL on Tejas.

you are DPSU employee??

 

[Instant Karma]

Why screw driver kings Adani, Ambani, TATA, Mahindra, LT not ready for SPV partner???

even after so many sweet deals from Gov they wont invest 1 rs in RD???

Correct. But Ambani is spending 10 thousand crs on preweding ceremony of his son but not ready to spend on projects of national security.