The Indian government has formed a high-level committee to explore ways to accelerate the production of the indigenous Light Combat Aircraft (LCA) Tejas Mk1A, potentially including a significant role for the private sector.
This initiative, spearheaded by the Ministry of Defence (MoD), aims to rapidly increase the Indian Air Force's (IAF) fighter squadron numbers and bolster India's self-reliance in defense manufacturing.
The committee, announced in early February 2025 and chaired by Defence Secretary Rajesh Kumar Singh, includes representatives from the IAF, Hindustan Aeronautics Limited (HAL), and other key stakeholders.
The panel has been given a one-month timeframe to deliver recommendations on streamlining production, identifying bottlenecks, and ensuring the IAF receives the aircraft it urgently needs.
The IAF currently operates only 31 fighter squadrons, significantly below its sanctioned strength of 42, a deficiency that poses challenges in the face of potential threats from neighboring countries.
One of the primary considerations is the potential involvement of private sector companies in manufacturing a substantial portion of a forthcoming order for 97 Tejas Mk1A aircraft. This would represent a significant shift from the current model, where HAL is the primary manufacturer. This change is being considered to increase the overall production rate.
HAL, which received a contract worth Rs 48,000 crore (approximately $5.8 billion USD) in 2021 for 83 Tejas Mk1A jets, is expected to receive an additional order for 97 more, valued at over Rs 65,000 crore (approximately $7.8 billion USD). However, concerns have been raised about HAL's capacity to meet the increased production demands, leading the committee to investigate outsourcing possibilities.
The committee is reportedly leaning towards transferring a part of the 97-aircraft order to private firms. Companies already involved in discussions for the AMCA program – India's planned fifth-generation stealth fighter – are considered strong candidates. These companies could potentially begin by assembling Tejas Mk1A jets under HAL's guidance, gradually increasing their involvement.
A significant challenge lies in the supply of F404 engines from General Electric (GE), which power the Tejas Mk1A. While GE is scheduled to restart deliveries in March 2025, their commitment is currently limited to 12 engines annually. This uncertainty casts doubt on HAL's ambitious goal of producing 30 jets per year by 2027 and achieving the IAF's target of receiving all 180 Mk1A aircraft (the initial 83 plus the additional 97) by 2031-32.
To potentially mitigate this, reports suggest that HAL might be asked to lease its Nashik facility, designated as the third Tejas Mk1A production line, to a private sector entity. This arrangement would initially involve the private firm learning the assembly process under HAL's supervision.
Eventually, the facility could transition to full private control, potentially serving as a production hub for both the Tejas Mk1A and the future AMCA. This approach aligns with the government's broader vision of creating a Special Purpose Vehicle (SPV) for AMCA production, involving HAL, ADA, and a private partner.
The proposed plan is not without its challenges. HAL's Nashik plant is new and only started the production in 2023. Transferring control of a strategic asset like the Nashik facility could lead to operational complexities. Private companies, while enthusiastic, will need substantial technology transfer and training to match HAL's decades of experience in fighter jet assembly.
Moreover, the reliability of GE's engine supply remains a critical factor, as even a privately-run production line could be hampered by insufficient engine deliveries. The urgency of the situation is further underscored by the IAF's publicly expressed concerns about its dwindling squadron strength, voiced by Air Chief Marshal A.P. Singh in 2024, highlighting the need for a swift and effective solution.
