HAL Issues EOI to Select Four Private Partners for AMCA Joint Production, Offering 12.5% Stake Each with Specific Work Package

In a major development for India's indigenous defence capabilities, state-owned Hindustan Aeronautics Limited (HAL) has invited private Indian companies to participate in manufacturing the country's futuristic fifth-generation fighter jet, the Advanced Medium Combat Aircraft (AMCA).

Through an Expression of Interest (EOI) issued earlier this year, HAL is seeking four partners to form a Joint Venture (JV) dedicated to producing major assemblies of the aircraft.

This strategic move aims to leverage the expertise and capacity of the private sector to accelerate the AMCA program, a cornerstone of India's push for self-reliance ('Atmanirbhar Bharat') in advanced aerospace technology.

Under the proposed JV structure, HAL will hold a majority 50% stake, ensuring its leadership role, while each of the four selected private firms will hold a 12.5% share.

Collaborative Manufacturing Model​

The AMCA, currently being developed by the Aeronautical Development Agency (ADA) alongside the Defence Research and Development Organisation (DRDO), is designed as a state-of-the-art stealth multirole fighter.

Its complex design, incorporating advanced materials and systems, necessitates a sophisticated manufacturing approach. The JV aims to address this by dividing the aircraft's structure into specific "work packages."

Each of the four private partners will be responsible for one major section of the aircraft, delivering it as a complete unit:

1. Front Fuselage: Including the fully equipped structure and landing gear assembly.
2. Center Fuselage: Encompassing the central airframe section, air intakes, and aileron assembly.
3. Rear Fuselage: Comprising the rear structure, horizontal tail, flaperon, and flap assembly.
4. Wings & Tail: Covering the fully equipped wing and vertical tail assembly.

Partners will be required to manage their package comprehensively, from tool design and material procurement to final manufacturing and assembly, delivering a 'turnkey' solution.

HAL will oversee the integration of these major assemblies and maintain quality control across the production line. This modular approach is expected to streamline manufacturing, foster innovation, and enhance overall efficiency by utilising the specialised skills of different companies.

Production Roadmap and Air Force Needs​

The EOI outlines a preliminary production timeline aiming for the delivery of 126 AMCA units. Starting in the financial year 2035-36, the JV is projected to produce nine aircraft assemblies per year initially, increasing to ten units annually from 2039-40 through 2046-47. These figures are tentative and subject to change based on finalized Indian Air Force (IAF) orders, consistent funding, and the achievement of technological milestones.

The IAF anticipates needing approximately five to seven squadrons of the AMCA, translating to roughly 90-126 aircraft. These advanced fighters are crucial for modernising the IAF's fleet and addressing its current operational strength, which stands below the officially sanctioned number of squadrons.

The AMCA program itself is advancing, with the first flight of a prototype aimed for the 2028-2029 timeframe, leading towards potential induction into the IAF around 2035. The successful establishment and functioning of this manufacturing JV are seen as critical steps to ensure the aircraft transitions smoothly from development to large-scale production.

Selection Process Underway​

Private Indian companies with demonstrated capabilities in aerospace manufacturing, tooling, and assembly integration are invited to submit their interest by the deadline of May 7, 2025.

The selection process is expected to favour firms with a strong track record in defence manufacturing, financial stability, technical expertise, and the capacity to meet the demanding production requirements for a fifth-generation aircraft.

Potential contenders could include companies like Tata Advanced Systems, Larsen & Toubro, Bharat Forge, and VEM Technologies, which have prior experience collaborating with HAL and DRDO on various defence projects, including the Tejas Light Combat Aircraft.

The chosen partners will need to prove their ability to handle the sophisticated aspects of the AMCA, such as its stealth features, potential for supercruise (supersonic flight without afterburners), and integration of cutting-edge avionics.

This partnership model represents a significant delegation of manufacturing responsibility by HAL, while it retains overall control and system integration leadership for this vital national project.

 

[sanket]

That's a good approach. Again, production is dependent on orders, and not orders are dependent on production. Being an SPV especially for AMCA, it will solely manufacture the AMCA Fighter Jet, while Tejas MK1A, Tejas MK2, and TEDBF will have separate assembly lines. If AMCA orders are hiked over 200, then the production rate may be hiked too. A lot will depend on IAF requirement.

 

[R. Singh]

Fuselage must have option to change the engine like Rolls Royce/ Russian/USA engines !

 

[SURESH RAO]

Not only that. HAL needs to drill the complete knowledge of Fighter Jet manufacturing into the private heads. This is the biggest task. And also HAL needs to whip them daily to get the job done.

 

[Deepak Hegde]

Why is the GOI allowing HAL to be the lead, and HAL is offering crumbs to private players? Why can't GOI directly call private players to take lead? As usual, HAL will make a mess of everything where it is allowed to take a lead!

 

[Sudha]

Then expect AMCA to be inducted anywhere between 2040-45, if HAL is involved. HAL should hold only 12.5% if AMCA should be inducted in 2033-35. Hope airchief will take initiative to limit HAL's involvment in AMCA.

 

[Sudha]

That's a good approach. Again, production is dependent on orders, and not orders are dependent on production. Being an SPV especially for AMCA, it will solely manufacture the AMCA Fighter Jet, while Tejas MK1A, Tejas MK2, and TEDBF will have separate assembly lines. If AMCA orders are hiked over 200, then the production rate may be hiked too. A lot will depend on IAF requirement.

Good approach for first induction is anywhere between 2040-45.

 

[GOVINDRAJAN N]

Very late but excellent move by HAL. Involving private sectors will not only speed up the process but also bring in their expertise. We eagerly await to see our AMCA in the air! All the best!!

 

[P.K Senapati]

Yes, HAL should keep final assembly, integration, equipping, and testing with itself.
Sub-assembly and structural parts should be outsourced to private.
Time for involving more private and MSMEs in aircraft manufacturing and establishing a supply chain ecosystem within the country.

 

[Pankaj]

Why do you people consider induction in 2035-2036? If the prototype comes in 2028, the induction must start from 2030 to 2031. It's time to work on a mission mode, and the whole project comes under PMO.

By 2035-2036, this 5th generation technology becomes generic, and the world moves towards 6th generation fighter jets, while we even start the induction of one generation back fighter jets.

It means, even after 10 years, we shall be lagging behind the world in defence technology. Henceforth, in a time span of 10 years, we shall not be in a competitive scenario.

Knowing the circumstances, I do not want to say that we should lead the world, but at least we should be in a competitive scenario even after 10 years.

 

[The_rED_dEVIL]

That's a good approach. Again, production is dependent on orders, and not orders are dependent on production. Being an SPV especially for AMCA, it will solely manufacture the AMCA Fighter Jet, while Tejas MK1A, Tejas MK2, and TEDBF will have separate assembly lines. If AMCA orders are hiked over 200, then the production rate may be hiked too. A lot will depend on IAF requirement.

Still the concern is the majority stake by HAL, who delivered 40 Tejas Mk1 over a span of 10 years (2015-2025, the counting of 10 years started after 9 years of placing order, 2006)
And I hope a dedicated assembly line for AMCA other than Bangalore and Nashik.

 

[Preet]

Good approach for first induction is anywhere between 2040-45.

The first flight must happen in 2027, and initial production in 2030-31. This must be the aim, just like the KF-21 programme. I hope the government takes the necessary steps and doesn't mess up like they have done in the last 4 years!

 

[Akshat]

The first flight must happen in 2027, and initial production in 2030-31. This must be the aim, just like the KF-21 programme. I hope the government takes the necessary steps and doesn't mess up like they have done in the last 4 years!

Yes, lets hope the government doesn't mess up and throws both DRDO and HAL aside. Else nothing will change and AMCA won't be coming till 2050. Optimistically.

 

[Surendra Barsode]

The idea that DRDO will design and develop technologies, HAL will integrate and private sector will contribute in various parts is well thought out and discussed for a long time. So the proposed structure is quite in line with the approach above. Let's move forward quickly.

 

[Akshat]

Highly unlikely that there will be any significant participation with this approach. In the disinvestment for Air India, no one came forward for 51% and even 76% stakes. Tenders came only when GoI agreed to disinvest 100%. Private players can't afford the sort of work environment and operating requirements that GoI/DPSUs have. So even if GoI offers 99%, there will be a significant negative premium attached to the offer.

 

[Drhaze]

Why is the GOI allowing HAL to be the lead, and HAL is offering crumbs to private players? Why can't GOI directly call private players to take lead? As usual, HAL will make a mess of everything where it is allowed to take a lead!

Because hal has the most experience and facilities. Unless you are proposing to lend hal's facilities to pvt sector. That would never happen. Political upheaval would be huge. Indians don't like disinvestment. Why? No idea.

 

[Sandeep]

It’s essential that HAL is only in charge of integrating, testing and certifying the jet but HAL needs to overhaul their working practice and put people with adequate knowledge, experience and proven track record in charge. They also need to make sure that while assembling the jets they need to do it properly, without any mistakes and adequate training and a final examination of the staff should be conducted.

Also they need to ramp up manufacturing the jets even higher and more quickly so that they can build up the number of jets.

 

[Anant]

Why do you people consider induction in 2035-2036? If the prototype comes in 2028, the induction must start from 2030 to 2031. It's time to work on a mission mode, and the whole project comes under PMO.

By 2035-2036, this 5th generation technology becomes generic, and the world moves towards 6th generation fighter jets, while we even start the induction of one generation back fighter jets.

It means, even after 10 years, we shall be lagging behind the world in defence technology. Henceforth, in a time span of 10 years, we shall not be in a competitive scenario.

Knowing the circumstances, I do not want to say that we should lead the world, but at least we should be in a competitive scenario even after 10 years.

Testing itself will take atleast half a decade.

 

[Python]

This PPP model is definitely needed to increase competition, which will accelerate AMCA production. If this model had been introduced in the Tejas Mk 1A or Mk 2, private firms could have gained valuable experience in manufacturing fourth-generation fighters, which would help them in AMCA assembly.

 

[Python]

Why is the GOI allowing HAL to be the lead, and HAL is offering crumbs to private players? Why can't GOI directly call private players to take lead? As usual, HAL will make a mess of everything where it is allowed to take a lead!

Has any private firms manufactured a fourth gen jet by their own? Is it plausible to think that private players will do magic and produce a fifth gen jet? HAL should definitely take the lead.

 

[Pankaj]

Testing itself will take atleast half a decade.

This is the lethargic approach. By then, we will have the experience of Tejas Mark 1A and Mk2; hence, testing must be completed in mission mode in 2-3 years, else we will lag behind.

 

[Python]

Then expect AMCA to be inducted anywhere between 2040-45, if HAL is involved. HAL should hold only 12.5% if AMCA should be inducted in 2033-35. Hope airchief will take initiative to limit HAL's involvment in AMCA.

It doesn't make sense for HAL to hold just 12.5% when it is the only organisation that has experience in making a jet. Private firms have neither experience in manufacturing a fighter jet nor significant R&D. Then how the heck will they lead the AMCA project?

 

[hector1001]

Maybe I'm missing something.
Why JV. It's not if these partners are going to contribute to tech delvelopment.
Why not just employ them as sub-contractors.

 

[Sumanta Nayak]

Very good proposal but the, production & delivery should start on 2030-31 government should give little more fund as the time line is very short must be condition to blacklist the company who is not delivered in time& fine should imposed.

 

[Leo red]

HAL is now a good boy. So learn to work together or vanish. Now get some young strong boys with strong companies like TATA, L and T, Mahindra. Get some strong, lethal, and good visionary young Indian entrepreneurs who work like Elon Musk but an Indian version, like we see with Ola and Zomato, etc.