India's program to develop a domestically-built fifth-generation stealth fighter jet, the Advanced Medium Combat Aircraft (AMCA), has seen a major shift in its private-sector partnerships.
Mahindra Defence Systems, a subsidiary of Mahindra & Mahindra, is no longer in the running to participate in the aircraft's production, leaving Tata Advanced Systems Limited (TASL) and Larsen & Toubro (L&T) as the primary contenders.
The AMCA program represents a departure from India's traditional approach to military aircraft production.
While Hindustan Aeronautics Limited (HAL) has historically been the central manufacturer, producing aircraft like the Tejas Light Combat Aircraft (LCA) and the license-built Su-30MKI, the AMCA project utilizes a Special Purpose Vehicle (SPV) model.
This SPV brings together both public and private sector companies to collaborate on the development and manufacturing of the advanced fighter. The SPV is a separate legal entity, formed specifically for this project, that will combine resources and expertise.
Mahindra Defence Systems, known for its contributions to armored vehicles, artillery, and naval systems, had initially aimed to be part of the AMCA's supply chain. However, the company's lack of recent experience in building aircraft fuselages or assembling complete fighter jets appears to have led to its exclusion from the project.
Tata Advanced Systems Limited, a key player in the Tata Group's defence business, and L&T, a major engineering and defence manufacturing firm, are now the frontrunners to lead the private sector consortium within the SPV. Both companies possess considerable experience and infrastructure that meet the stringent requirements of the AMCA program.
The final makeup of the private sector consortium is still being determined. Several other companies that were initially interested have either been eliminated or have withdrawn, primarily due to the strict requirement for prior experience in aircraft fuselage construction or assembly. This has presented a challenge for companies specializing in other areas, such as electronics, software, or ground-based systems.
Besides Tata and L&T, the final consortium is expected to include additional companies specializing in subsystems like avionics (electronic flight control systems), radar, and propulsion.
HAL, holding a minority stake in the SPV, will play a crucial role in providing technical expertise, supplying critical components (such as engines and landing gear), and ensuring the aircraft meets the Indian Air Force's (IAF) specifications, drawing upon its extensive experience in fighter jet manufacturing.
The initial development cost of the AMCA project is estimated to be close to ₹15,000 crore (approximately $1.8 billion USD). The overall AMCA programme, as reported is to be over $5 Billion USD.
The AMCA is being developed by the Aeronautical Development Agency (ADA) under the Defence Research and Development Organisation (DRDO). The first flight of AMCA Mark-I is expected to take by 2028 and production will start by 2030.
