Mahindra Exits AMCA SPV Model Race, Leaving Tata and L&T to Lead India's Stealth Fighter Production

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 Several other companies that were initially interested have either been eliminated or have withdrawn, primarily due to the strict requirement for prior experience in aircraft fuselage construction or assembly.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.

 

[P2S2]

SPV is the way to go.

 

[sanket]

I have been saying 100 times that for AMCA Assembly, 3 private players were interested under the Special Purpose Vehicle (SPV) model, where AMCA is going to be assembled by a public-private partnership, with private players leading the project. Finally, 3 names are out. Some people were asking for the names of the 3 private companies for AMCA production; here they are, and one of them is opting out. Hope by 2035, time for chai samosa. Lastly, AMCA will be rolled out, Tejas MK2 too, & Tejas MK1A also. It's a bad time for naysayers. Hope they will have good sales in the GE factory for their chai, samosa, & chole bhature.

 

[venkat]

L&T, TASL, Godrej and HAL at 25 percent each

 

[swatkats_razor]

HAL, with its minority stake, will:

• Provide technical oversight.
• Contribute technical sub-assemblies.
• Ensure compliance with IAF specifications.

I wonder when HAL will implement all of these in the Tejas Mk1A project, where it holds the majority stake?

 

[Anant]

HAL, with its minority stake, will:

• Provide technical oversight.
• Contribute technical sub-assemblies.
• Ensure compliance with IAF specifications.

I wonder when HAL will implement all of these in the Tejas Mk1A project, where it holds the majority stake?

It's only a tactic for them to shift blame. HAL will cause delays, and then they'll blame the majority stakeholders for their own incompetence.

 

[SURESH RAO]

Now with many many private players joining the supply chain. HAL will become lead integrator. And HAL will be very successful in delivering the LCA Mk1A orders.

 

[swatkats_razor]

It's only a tactic for them to shift blame. HAL will cause delays, and then they'll blame the majority stakeholders for their own incompetence.

I don't understand why the Government even entertains this fit for nothing apology of an Aeronautical Obligation.
The extend to which the government tends to bend backwords, in order to accommodate HAL, is actually ironical. As if, it was a constitutional mandate to include HAL into anything that includes flying objects.

 

[swatkats_razor]

L&T, TASL, Godrej and HAL at 25 percent each

What does HAL bring to the table, that it were accorded 25% share in the consortium. It is a well known fact, that the few good engineers who join HAL, leave for greener pastures whithin the first 2-3 years. So that talk of bringing any form of expertise is just pure bollocks.

 

[Vijigishu ( विजिग्शु )]

I don't understand why the Government even entertains this fit for nothing apology of an Aeronautical Obligation.
The extend to which the government tends to bend backwords, in order to accommodate HAL, is actually ironical. As if, it was a constitutional mandate to include HAL into anything that includes flying objects.

Many reasons:

1. The government itself works on advice and inputs from bureaucrats, who will always advise for HAL inclusion because they too are socialist power-trippers in their late 50s.
2. There's a very positive public perception of HAL, since most of the public don't know sh1te about defense or HAL.
3. If HAL gets completely ignored, it gives a lot of ammunition to the opposition to blame the government for destroying PSUs, which the general, ignorant public will readily accept.

 

[swatkats_razor]

Many reasons:

1. The government itself works on advice and inputs from bureaucrats, who will always advise for HAL inclusion because they too are socialist power-trippers in their late 50s.
2. There's a very positive public perception of HAL, since most of the public don't know sh1te about defense or HAL.
3. If HAL gets completely ignored, it gives a lot of ammunition to the opposition to blame the government for destroying PSUs, which the general, ignorant public will readily accept.

Points 1 & 2 seem very pertinent. Pint 3, I am not certain if the current government really cares for the opposition's blame-game, so long as it doesn't step on the reservation narrative. But then, this government has at times, shown to show great flexibility in bending over backwards when it wasn't required to. Withdrawing the agricultural reforms bill, being a case in point.

 

[Sandeep]

India has so many private companies that can contribute in developing and manufacturing parts and components but only 2 companies participation is a problem and concern. Our over reliance on just a few companies can lead to major supply chain bottlenecks and any issues or problems can delay any rollout. Also those that do participate must show that they are capable of meeting the mandatory manufacturing targets.

 

[SURESH RAO]

Let us look at 2 wheeler partnership. Bajaj and Kawasaki entered into partnership during 1980's. Even Hero and Honda entered into partnership during 1980's. Even TVS and Suzuki entered into partnership then. After 20 years of partnership they split. It took more than 20 years for Bajaj, Hero and TVS to understand the technology and establish their own manufacturing and assembly line.

Now again let us look at the new partnership which has taken place between Airbus and Tata to produce C295 in GUJARAT. How many years will it take for Tata to understand and produce their own planes?

 

[P2S2]

Our majors should be supported to create stuff on their own. There's enough money floating around for them to raise funds from. They are national entities assured of guaranteed national orders. They need to stop this negativity and show us their nationalism without sinking into their present dependence philosophy.

 

[LookingBack]

I don't understand why the Government even entertains this fit for nothing apology of an Aeronautical Obligation.
The extend to which the government tends to bend backwords, in order to accommodate HAL, is actually ironical. As if, it was a constitutional mandate to include HAL into anything that includes flying objects.

Let HAL remain there, it's for time being to minimize unwanted voice of opposition and few jack people. Later you can always ask them to complete their part as per Tatas or L&T's. HAL will simply opt out.

 

[sujith sudhakaran]

Let us look at 2 wheeler partnership. Bajaj and Kawasaki entered into partnership during 1980's. Even Hero and Honda entered into partnership during 1980's. Even TVS and Suzuki entered into partnership then. After 20 years of partnership they split. It took more than 20 years for Bajaj, Hero and TVS to understand the technology and establish their own manufacturing and assembly line.

Now again let us look at the new partnership which has taken place between Airbus and Tata to produce C295 in GUJARAT. How many years will it take for Tata to understand and produce their own planes?

A lot likely because it's just a assembly line private sectors do little to no R&D in india they just make variants of systems devolped by DRDO or partner with foreign companies to screw drive their products and stick an Indian name over it.

 

[SURESH RAO]

India has so many private companies that can contribute in developing and manufacturing parts and components but only 2 companies participation is a problem and concern. Our over reliance on just a few companies can lead to major supply chain bottlenecks and any issues or problems can delay any rollout. Also those that do participate must show that they are capable of meeting the mandatory manufacturing targets.

There are hundreds of Private Companies who are supplying various parts to HAL. A fighter jet or an aircraft has 1000s of components

 

[Surfer]

I have been saying 100 times that for AMCA Assembly, 3 private players were interested under the Special Purpose Vehicle (SPV) model, where AMCA is going to be assembled by a public-private partnership, with private players leading the project. Finally, 3 names are out. Some people were asking for the names of the 3 private companies for AMCA production; here they are, and one of them is opting out. Hope by 2035, time for chai samosa. Lastly, AMCA will be rolled out, Tejas MK2 too, & Tejas MK1A also. It's a bad time for naysayers. Hope they will have good sales in the GE factory for their chai, samosa, & chole bhature.

It could very well be Tata making F21 and LM helping AMCA, in order to get GE engine for Tejas, Airforce Chief was also saying this in previous article.

How MRFA Winner Could Play a Pivotal Role in Accelerating India's AMCA 5th-Gen Jet? Engine, Radar, and Stealth Techs Key Factors

Yesterday at 7:08 PM

The Indian Air Force (IAF) is exploring ways to speed up the development of its ambitious fifth-generation fighter jet, the Advanced Medium Combat Aircraft (AMCA), by potentially leveraging the expertise of the winner of a separate, large-scale fighter jet procurement.

This was indicated by Air Chief Marshal A.P. Singh, Chief of the Air Staff, at the India Today...

• Raghav Patel
• Replies: 18
• Forum: Defence News India

• 

 

[TETRA]

Finally the Govt has acknowledged the ineptitude of HAL. Question is if Mahindra doesn't have experience in fuselage how come TATA and L&T got them. Even they are only starters or am I in the dark not knowing what is happening in the country.

 

[Krishnendu Chatterjee]

There are hundreds of Private Companies who are supplying various parts to HAL. A fighter jet or an aircraft has 1000s of components

It's the case with every big entity like Dassault, LH Martin, Boeing Corp. These companies are called Chief aggregators or Chief Contractors. The key components and sub-systems are outsourced from thousands of small firms from all over the world. Countries like China, Taiwan, Brazil, South Korea, Turkey play key roles.

 

[Krishnendu Chatterjee]

HAL should focus on Super Sukhoi, upgrading Jaguars and upcoming SU-57.
Leave AMCA to pvt. players.

 

[Varaaah]

TATA is a bit doubtful. They work for the interest of their share holders, who can force them to pull back from such defense projects if the profit is only marginal.