3 Private Companies Express Interest in SPV Model for AMCA Production

India's ambitious Advanced Medium Combat Aircraft (AMCA) program is poised for a significant leap forward, with the formation of a public-private sector consortium taking center stage. This innovative approach, a first for India, involves the establishment of a special purpose vehicle (SPV) to oversee the manufacturing of the AMCA jet.

Three private companies have responded to the Ministry of Defence's Expression of Interest (EoI), indicating their keenness to participate in this groundbreaking venture. The SPV, with a majority stake held by the private sector, will be responsible for the assembly and maintenance of the AMCA jet, which is projected to enter production around 2032-2033.

This public-private partnership model is expected to harness the strengths of both sectors. The private sector's expertise is anticipated to streamline production processes and enhance efficiency, while government involvement ensures strategic oversight and adherence to national security considerations.

The names of the companies joining the SPV are expected to be announced within the next six months.

This collaborative effort represents a pivotal moment for India's defence production landscape, potentially paving the way for increased private sector participation in future projects, fostering innovation, and accelerating India's journey towards self-reliance in defence technology.

As the AMCA program progresses, the world will be watching closely to see how this innovative model unfolds and its impact on India's defense capabilities.

 

[Apocalypse gupta]

If this works, it could serve as a template for all major and expensive defence projects in the country, from AC, Nuclear subs, FIghter jets, large transport aircraft etc.

Massive advantage of reducing risk on any one company, as well as increasing capability and diversifying supply chain.

At least the monopoly of HAL will be broken. This govt will do what no one has been able to in Indian aviation. Privatise Air India, and break HAL's monopoly.

 

[ramdas]

The current timeframe may be too late, even if everything goes according to schedule. Multiple countries are already in the 6th generation category.

 

[Anant]

The current timeframe may be too late, even if everything goes according to schedule. Multiple countries are already in the 6th generation category.

The current timeframe is also ridiculously optimistic. If the first prototype manages to fly in 2029, the earliest we would be able to complete testing would be 2036-37, which means production isn't beginning until the tail end of the 2030s.

 

[Sudha]

The current timeframe is also ridiculously optimistic. If the first prototype manages to fly in 2029, the earliest we would be able to complete testing would be 2036-37, which means production isn't beginning until the tail end of the 2030s.

With private sector involved am hopeful the prototype will fly by 2028-29. All timeline will depend on how fast the SPV partners are shortlisted & the contract is signed. Hope MOD will not move in a lethargic speed. Since our PM is more interested in Bharat's interest & development it is better the project is tracked by PMO instead of the lazy, corrupt bureaucrats of MOD.

 

[DNA57]

Very good decision.

 

[MANIVANNAN N]

First create parallel manufacturing facility for mk2 and amca otherwise production on time impossible.

And also engine availability on time important.

 

[MANIVANNAN N]

Hal creating any manufacturing facility for mk2? If no means hal will take 3 to 4 yrs to create facility.

 

[Anant]

With private sector involved am hopeful the prototype will fly by 2028-29. All timeline will depend on how fast the SPV partners are shortlisted & the contract is signed. Hope MOD will not move in a lethargic speed. Since our PM is more interested in Bharat's interest & development it is better the project is tracked by PMO instead of the lazy, corrupt bureaucrats of MOD.

I have a feeling the private sector's involvement will be limited to production, with HAL keeping the entire development and testing phase to themselves. After all, how else will they justify their future POs for items used in Chai and samosas?

 

[Tanishq Bafila]

Hal creating any manufacturing facility for mk2? If no means hal will take 3 to 4 yrs to create facility.

Mk2 will go into production by 2030 in the same assembly lines that are currently producing Tejas mk1A

 

[Sandeep]

It seems like progress is being made and well in advance before they even start production which is good as this will cut delays. Now HAL just has to start manufacturing and developing the AMCA prototype which needs to occur as soon as possible to avoid delays. We need these jets in the air as soon as possible.

 

[Anant]

Mk2 will go into production by 2030 in the same assembly lines that are currently producing Tejas mk1A

If they use the same production lines, then we'll be manufacturing Tejas Mk 2s well into the 2040s and possibly into the 2050s.

 

[wallisk]

With private sector involved am hopeful the prototype will fly by 2028-29.

All dates of HAL just simply add in another 10 years...

 

[Tanishq Bafila]

If they use the same production lines, then we'll be manufacturing Tejas Mk 2s well into the 2040s and possibly into the 2050s.

Not to forget Production numbers depends on the Buyer's order. LM has been producing 90-100 F-35 every year due to its order book , on the order Hand Rafale has been producing 12-16 jets in last 4 years. Now they are increasing to 24 jets when order book jumps to 300.

Russia is acquiring 10-12 Su-35 every year , when they have a mature industry and Su-27 series & Su-35 has so many common parts.

Every production like goes like this in the world

 

[sanket]

With private sector involved am hopeful the prototype will fly by 2028-29. All timeline will depend on how fast the SPV partners are shortlisted & the contract is signed. Hope MOD will not move in a lethargic speed. Since our PM is more interested in Bharat's interest & development it is better the project is tracked by PMO instead of the lazy, corrupt bureaucrats of MOD.

protype is going to manufactured by HAL. & not by pvt sector.Final production of AMCA MK1 & AMCA MK2 will b manufatured by under SPV Model.

 

[sanket]

it is very positive developments AMCA prototype likely to roll out by 2028 But how many production line will b Running AMCA (MK1&MK2) under SPV.,Second producttion Line from MRFA & HAL will have 28 to 30.

 

[Akshat]

With private sector involved am hopeful the prototype will fly by 2028-29. All timeline will depend on how fast the SPV partners are shortlisted & the contract is signed. Hope MOD will not move in a lethargic speed. Since our PM is more interested in Bharat's interest & development it is better the project is tracked by PMO instead of the lazy, corrupt bureaucrats of MOD.

Remember WhAP and ATAGS? Or even AIP?

When DRDO gets involved, they can delay the project even with the private players.

 

[Akshat]

All dates of HAL just simply add in another 10 years...

Even that’s not enough. Tejas mk2 was supposed to get into production in 2016 as per their own tender documents but right now it seems even first flight is unlikely by 2026.

 

[Puneet]

HAL should be bifurcated into two; fixed wing and rotary wing organizations. The way OFB has been done. Slowly private sector, FII and public holdings should be increased.

 

[prasant kumar shaarma]

Beware! There may be sabotage of this approach by the Trade Unions and/or enemy countries.

 

[Pad UwU]

I only believe this if those 3 so called 3 private company and HAL pull this one out and show us the AMCA prototype 😹😹😹

 

[kumar]

HAL should be bifurcated into two; fixed wing and rotary wing organizations. The way OFB has been done. Slowly private sector, FII and public holdings should be increased.

Private sector is not taking enough risks.

 

[Masha]

The current timeframe is also ridiculously optimistic. If the first prototype manages to fly in 2029, the earliest we would be able to complete testing would be 2036-37, which means production isn't beginning until the tail end of the 2030s.

Variant of AMCA is already inducted and flying and is used in a real war else where in the World, so 3 years is a lot of time, only setting up takes 2.6 years, but the flying prototype of India specific variant will be made in 6 months.

 

[beencensured]

If truly it is a fifth generational aircraft everything should be top secret, but in this country a little bribe all secrets come out because of British culture left to India that values money above truth. How to secure such technology as America does? I am not saying with HAL is more secure, or with government, but generally what is wrong with culture as India under Nehru adopted Angrezi culture of loot which has kept India from developing.

 

[Anant]

Variant of AMCA is already inducted and flying and is used in a real war else where in the World, so 3 years is a lot of time, only setting up takes 2.6 years, but the flying prototype of India specific variant will be made in 6 months.

Variant of AMCA already inducted and flying? Where, exactly? Did I just happen to sleep for a decade and a half by accident and this is 2039?

AMCA only exists on paper and a few sheets of metal right now, in terms of stuff that is tangible. So yeah, give them 5 years to build and fly a prototype, another 7-8 years to test it, and then 2-3 years to get it into production.

 

[Anant]

Not to forget Production numbers depends on the Buyer's order. LM has been producing 90-100 F-35 every year due to its order book , on the order Hand Rafale has been producing 12-16 jets in last 4 years. Now they are increasing to 24 jets when order book jumps to 300.

Russia is acquiring 10-12 Su-35 every year , when they have a mature industry and Su-27 series & Su-35 has so many common parts.

Every production like goes like this in the world

I don't disagree, boss. However, there is a massive difference between the US or Russia, and India. Our production lines have external dependencies. Their lines don't, atleast not to anywhere near the same extent.

Moreover, France, America, Russia, and even someone like China now have a mature aircraft production industry, where consistent orders over decades has allowed suppliers across the entire supply chain to build capacity and deliver on time. In India, we do not have large orders, but we also do not have a mature aircraft production industry. We also have suppliers who cannot scale up as fast as HAL keeps saying they'll ramp up production. As a result, while our production capabilities will improve, it'll not happen anywhere near as quickly as HAL or others seem to think.

Oh, and once you factor in those external dependencies such as the engine, some avionics, and other things, that is just two more levels of complexity and challenges in improving production rates.

 

[Anant]

Private sector is not taking enough risks.

Why should they, if they are going to get slapped in the face for their troubles? Look at the Navy: They committed to procuring Indian-manufactured diesel engines in the 1980s, and along came Kirloskar Group to build them under license. Now, Kirloskar Group is developing its own diesel engines, and the Navy is ready to get them.

On the other hand, we have Tata, who developed the WhAP, only for the Army to start running for the Stryker the moment they got the opportunity. Tell me, if you were leading the defence division in Tata, and you were looking at this scenario where license production / screwdrivering was getting you large returns (as is the case with the C-295) versus a product developed by Tata themselves getting thrown aside, would you be willing to commit for more R&D?

Remember that private companies are not the same as PSUs. Private companies are very strongly answerable to their shareholders, and their primary motivation is to make money. If you deal with them, you do so on their terms.

 

[beencensured]

Private sector is not taking enough risks.

Indian private sector are mostly crony and nonsense. Start ups have innovating mentality, competitive environment then private could reform .

 

[Masha]

Variant of AMCA already inducted and flying? Where, exactly? Did I just happen to sleep for a decade and a half by accident and this is 2039?

AMCA only exists on paper and a few sheets of metal right now, in terms of stuff that is tangible. So yeah, give them 5 years to build and fly a prototype, another 7-8 years to test it, and then 2-3 years to get it into production.

You will know it in 6 months, May be folks here have memory loss, I am very clear and have a very good memory.

 

[ASHOK CARROL]

HAL at taxpayers expence over the last 70 yrs has built infrastructure , land holdings , equipment and trained manpower imbibed experience but lacks result orientation , Time lines and quality control. To bring it world class level this profit making public monopoly need not be privatized but needs to be professionalized and the govts equity holding diluted to 51% with large strategic partners like TATA systems , GODREJ , Bharat forge , BEL and many large medium and small equipment suppliers sold the shares .The chairman and board of directors then make the required investments , hire skilled manpower including foreign specialists and modernise /expand as per need . The internal meddling by babus sitting in Delhi and Netas will stop and an aerospace commission must then oversee the operations . The militant unions disbanded from this strategic company and manpower recruited on merit, qualifications experience, rather than on regional affinity and personnel relations .Alliances with American companies , french german British for sparesand parts in its sub units will keep the company it the global supply chain embedded into the latest technologies and reap rewards .