MoD Plans Separate Public-Private Production Line Model for AMCA as Previous SPV Model not Attracting Private Investment

India's Ministry of Defence (MoD) is charting a new course for the Advanced Medium Combat Aircraft (AMCA) project, opting for a dual public-private production model with two development-cum-production partners (DcPPs) - one public (most likely HAL) and one private. This move aims to ensure a competitive and resilient supply chain for India's first fifth-generation stealth fighter jet.

Originally, a Special Purpose Vehicle (SPV) model was proposed, where state-owned Hindustan Aeronautics Limited (HAL) would lead the initial production of the AMCA Mk1, while a private sector entity would take over the subsequent AMCA MkII. However, challenges in investment and supply chain management prompted a shift.

The MoD will now fund both HAL and a soon-to-be-selected private company to develop their respective AMCA prototypes. After rigorous evaluation, the superior design will become the baseline for production, with both companies likely awarded manufacturing contracts, potentially in a 60-40 ratio. This dual-line approach aims to mitigate risks and bolster the supply chain.

The Indian Air Force (IAF) is expected to procure 120 AMCA jets, comprising 40 AMCA MkI and 80 AMCA MkII variants. While this revised model aims to accelerate development, the AMCA project has faced delays, with the prototype's first flight now expected in 2028, instead of the initial 2024-25 timeline. These delays are attributed to challenges in finalizing production partners and ongoing negotiations with General Electric for local manufacturing of the GE F-414 engine, which will power the initial AMCA Mk1 jets.

Former IAF Chief ACM RKS Bhadauria highlighted the difficulties in the earlier SPV model, citing unsuccessful discussions with private entities. The MoD's adoption of the DcPP arrangement aims to overcome these hurdles.

In addition to the revised production model, the AMCA's design has also undergone changes, with its weight increased to 27 tonnes to accommodate a larger payload of conventional weapons in its internal weapons bay.

The success of this dual production line model could set a precedent for future indigenous defence projects, ensuring a robust and competitive domestic defence industry.

 

[Akshat]

Really these government babus are big fools.which private sector will jump in and make such useless expenditure after seeing atags whap projects.
really these clowns are delaying the project so that they will become Kalmadi to procure in emergency and go to jail after pocketing kickbacks

Oh private sector is still heavily bullish on defense. And earlier the problem was that GoI wasn't letting them participate. But now that is happening.

As for kickbacks, are you saying Indian companies can give kickbacks, if it comes to that?

 

[Akshat]

Looking at what the MoD did with Tata Kestrel vis-a-vis General Dynamics Stryker as precedence, where the desi platform has been subject to gruelling tests whereas the Stryker which has had a history of mixed performance, yet has received implicit acceptance for acquisition within the military circle, I do not hold much hope that any SPV model will fly with the private players. Not with the prevailing practice at MoD which can't seem to make up its mind regarding its import policy.

Tata Kestrel was given a fair chance and it failed. So lets not promote something just because it's Indian. Still, orders have been given by CAPFs and further orders are expected even from the army. As for Striker, there is no evidence that it is cleared without any trials.

 

[Akshat]

Even if a private sector company gets selected as L1 then too with an order of 200, then receiving 120 is not economical and HAL not having that much capital investment requirements can even sustain itself with an 80 aircraft order and call it a profit. If they want to do something to get the private sector involved, then parts like the wings, tail, nose should be outsourced and other internal sub systems thta the DPSUs are not having enough capacity to do so. Make the Private players suppliers, then major sub contractors, finally nudge them into manufacturing.

As long as HAL is involved in any way, shape or form, the project will get delayed. So the aim should be to get them out as soon as possible. This is the best route for that. GoI is ready to bear the cost for that?

 

[War is good for business]

As long as HAL is involved in any way, shape or form, the project will get delayed. So the aim should be to get them out as soon as possible. This is the best route for that. GoI is ready to bear the cost for that?

Whatever GoI is doing, they are expecting Private players to leapfrog into becoming manufacturers. Given the complexity and expenses involved, I believe that a slow approach where they evolve from component maker to full subcontractors and finally manufacturers. The political leadership regardless of party affiliation wants to show results in a small time but that is not really possible. Will the GOI think like this or not I cannot say. But this is not unheard of for GOI as Dassault during old MMRCA proposed that Reliance makes the wings and HAL the rest of the fuselage of the license produced Rafales.

 

[Bard of Anarchy]

Tata Kestrel was given a fair chance and it failed. So lets not promote something just because it's Indian. Still, orders have been given by CAPFs and further orders are expected even from the army. As for Striker, there is no evidence that it is cleared without any trials.

What about WhAp

 

[Sandeep]

Whatever GoI is doing, they are expecting Private players to leapfrog into becoming manufacturers. Given the complexity and expenses involved, I believe that a slow approach where they evolve from component maker to full subcontractors and finally manufacturers. The political leadership regardless of party affiliation wants to show results in a small time but that is not really possible. Will the GOI think like this or not I cannot say. But this is not unheard of for GOI as Dassault during old MMRCA proposed that Reliance makes the wings and HAL the rest of the fuselage of the license produced Rafales.

One key deal breaker in the first MRFA was that dassault were not going to accept any liability for anything made by HAL because they doubted that HAL had the correct working practices, experience, correct and trained manpower to manufacture and assemble the complex and advanced rafale jet.

 

[BILLY GILL]

The govt and it's agencies keep changing the goal post to hide their incompetence. They keep changing models without much work on ground. I pray to God that we don't have to see 1962 again. The same is the case with purchase of 114 fighter aircraft, keep changing the method of procurement. Once something goes wrong the military will be blamed. Please give them a fair chance to stand up against our enemies. Jai hind

 

[War is good for business]

One key deal breaker in the first MRFA was that dassault were not going to accept any liability for anything made by HAL because they doubted that HAL had the correct working practices, experience, correct and trained manpower to manufacture and assemble the complex and advanced rafale jet.

I doubt anyone ever will accept liability for defect by any licence manufacturer unless thay have command and control over the process. The MMRCA wanted sun, moon and stars, that's not gonna happen ever.

 

[Sandeep]

This approach will work in a better way. By increasing competition the price will be lower and the technology developed and used can be the best possible option. But we should not just look for the cheapest jet as the quality and capabilities are more important.

Also we need to speed up the process and start at least 3-4 production line per company. Also the amount of jets we need to procure should be more than 120 as these will be our next workhorse for at least 40-50 years and to replace the Sukhoi jets we need to have at least 300-400 AMCA jets as our threat levels will increase on the borders. We also need to protect our islands and especially the Andaman and Nicobar islands which is our main defence in the east against Chinese naval ships.

 

[Sandeep]

What about WhAp

Recently there was an article saying that at least 100 will be ordered with more orders much later.

 

[Nidhish debbarman]

Forget a decade and AMCA. LCA Mk2 was supposed to go into serial production in 2016 and even till now we don't even have the prototype roll out.

As for US engines, why blame them when HAL couldn't even deliver the trainers even after a year? All engines have been delivered for those trainers right?

Yes but with trainer's aircraft first HAL need to talk with IAF expertise what they want... after receiving a product they(IAF) continously demand for changes.... now it is not a car or a bike u go on refitting and deliver what customer want. Look what is going with Arjun mbt mk1A now DRDO can't deliver because Germany denied to give engines, all government PSUs are lagging behind to deliver products at schedule time-line. So my point is better to go with atleast two different companies and build two products so that the pressure can be shift to the foreign companies.

 

[Dredd]

Good Appraoch, it will deliver Jets faster if the order is split in 60/40 Ratio

If both DcPP are developing prototype then it make sense to have a different approach for both prototype(design philosophy) and select the best one, similar to what USA did with X-32 and X-35 plan. or China did with JXX, IF both are based on same model that ADA shares then it will be unfair to judge one upon other as it will be judge solely on avionics which can be updated on either one. Also it will be waste of resources making same prototype.

 

[Sudha]

Good Appraoch, it will deliver Jets faster if the order is split in 60/40 Ratio

No HAL involvement will be 100% better. But unfortunately initial hand holding is required.

 

[Sudha]

If both DcPP are developing prototype then it make sense to have a different approach for both prototype(design philosophy) and select the best one, similar to what USA did with X-32 and X-35 plan. or China did with JXX, IF both are based on same model that ADA shares then it will be unfair to judge one upon other as it will be judge solely on avionics which can be updated on either one. Also it will be waste of resources making same prototype.

Cant expect that with unexperienced private sector. Wasteage of resources? With so much capacity to manufacture how much HAL has actually delivered? Roughly 3-4 aircrafts per year.

 

[Pramkumar]

There is no second company to develop and procure the AMCA. Better to setup the 2nd company in Tamil Nadu Defence Cordier and start the AMCA solely with production rate of 24 AC per annum and order for 240 nos in two batches of 120 each.

 

[Sudha]

Yes but with trainer's aircraft first HAL need to talk with IAF expertise what they want... after receiving a product they(IAF) continously demand for changes.... now it is not a car or a bike u go on refitting and deliver what customer want. Look what is going with Arjun mbt mk1A now DRDO can't deliver because Germany denied to give engines, all government PSUs are lagging behind to deliver products at schedule time-line. So my point is better to go with atleast two different companies and build two products so that the pressure can be shift to the foreign companies.

Taking to deliver a plane which was supposed to be delivered by early 1990s but delivered in 2015 (20+ years late), you are still surprised that IAF has asked for changes? You want IAF to fight 5th gen fighters with 3rd gen planes & win?

 

[Akshat]

Yes but with trainer's aircraft first HAL need to talk with IAF expertise what they want... after receiving a product they(IAF) continously demand for changes.... now it is not a car or a bike u go on refitting and deliver what customer want. Look what is going with Arjun mbt mk1A now DRDO can't deliver because Germany denied to give engines, all government PSUs are lagging behind to deliver products at schedule time-line. So my point is better to go with atleast two different companies and build two products so that the pressure can be shift to the foreign companies.

Bro before bashing IAF get your facts straight. Trainers are of FOC standards. This certification was given in 2019. Since then no changes have been requested.

Yes, engines and other issues might be a problem. But even despite those issues, HAL has been even slower. In manufacturing, the slowest component is called the critical bottleneck. Our bottleneck is HAL. Even when everything is done, HAL simply refuses to deliver the planes come what may.

 

[Akshat]

What about WhAp

Tata Kestrel is just another name for Tata WhAP.

 

[Dredd]

Cant expect that with unexperienced private sector. Wasteage of resources? With so much capacity to manufacture how much HAL has actually delivered? Roughly 3-4 aircrafts per year.

Not 100% but tata will have skilled manpower for such tasks. They are developing complete C295 along with airframes of Chinook, apache and some parts of F-16/F-18 as well. I am sure tata will come up will par prototype if not better compared to HAL. HAL is going to loose this one

 

[Dredd]

No HAL involvement will be 100% better. But unfortunately initial hand holding is required.

HAL influence will make Private sector lethargic