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.

 

[sanket]

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

 

[desigandu]

120 AMCA jets are insufficient volume for 2 partners commercially - not going to happen at least from private sector…can they go to 400-500 jets in 10-15 years including exports, then it may be viable…

 

[Raj]

Stop AMCA news. It's going to happen after 10 to 20yrs. Focus on MRFA, select 5th gen capability fighter jets in mrfa. So that we dont need to think about amca.

 

[Anshuman Dev]

Good IDEA SIRjii...

In absence of a competition, the project will keep on stretching till eternity!!!!
But, a Reliable & Resourceful private partner should be found. Maybe TATAs can chip in....

 

[Mithu Roy]

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

 

[swatkats_razor]

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.

 

[R. Singh]

Better Govt ask CII to form consortium of Indian pvt firms to join HAL in joint production of AMCA ,its engines, and complete fighter making eco system like USA have Lockheed Martin, Northrop Grumman, GE and Raytheon !

 

[abhinav srivastava]

Small numbers won't make economical sense for two production lines. Numbers should be increased.

 

[Rational Guy]

Why production line in Tamil Nadu make it in Karnataka the aerospace hub.

 

[Ranjeet Singh]

ADA HAL first make twin engine ORCA powered by Kaveri (80+ KN) engines till AMCA MK-1 go into production !AMCA is far far away till then our Kaveri engine will also be tested and Jaguar replacements ORCA will strengthen IAF !

 

[War is good for business]

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.

 

[Akash Verma]

To me this looks like 20 years more

 

[Sandeep]

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

First they have to develop the prototype. Once that is done then the type and different methods of procurement can be decided or changed. But it doesn’t delay the rollout as the private sector who are interested will work closely with the government as long as operational control is left with the private sector and HAL can just advise if needed. Also China can’t go to war with India because we have nuclear weapons and they have too much to lose just like we do.

 

[Raj]

We don't have much options left.
buy few f35 & continue amca by trusting psu's. But f35 , f35 infra is whole new thing.
or
In mrfa invest in kf 21 block 2.plan such way modify all fighter jet as per our requirement. Cancel amca.

 

[ABHIJIT APSINGIKAR]

The Charade of HAL/ADA/DRDO combined keeps chugging along , nicely fooling Indians and swindling MoD out of resources just to ensure their retirement benefits.

 

[Sridhar]

Any approach is fine as long as the purpose is met.

 

[GMR]

And the saga continues....

 

[Nidhish debbarman]

almost a decade now HAL can't build and showcase a prototype of AMCA how to expect from them. They can't afford one or two engines to buy separately from Safran or other companies so that they can test LCA and now U.S is doing what they're known for.

 

[Akshat]

almost a decade now HAL can't build and showcase a prototype of AMCA how to expect from them. They can't afford one or two engines to buy separately from Safran or other companies so that they can test LCA and now U.S is doing what they're known for.

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?

 

[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