Private Sector to Spearhead AMCA Mk2 Stealth Jet's Production, L&T and Tata Frontrunners with Mass Manufacturing Capabilities

In a major boost to India's indigenous defence capabilities, private sector giants Larsen & Toubro (L&T) and Tata Advanced Systems are poised to play a pivotal role in the production of the Advanced Medium Combat Aircraft (AMCA) Mk2.

This information, revealed at Aero India 2025, underscores the Indian government's increasing emphasis on private sector participation in defence manufacturing.

While Hindustan Aeronautics Limited (HAL) will manufacture the initial 40 AMCA Mk1 jets for operational evaluation, the bulk of the production will focus on the more advanced AMCA Mk2 variant. The Indian Air Force (IAF) intends to initially procure 80 AMCA Mk2 aircraft, with plans to increase this number by another 80 in the second procurement phase.

To facilitate the development and production of the AMCA Mk2, the Ministry of Defence (MoD) is exploring the formation of a Special Purpose Vehicle (SPV). This collaborative model will bring together key stakeholders, including the DRDO, HAL, and private sector companies like L&T and Tata Advanced Systems. The SPV aims to streamline the entire process, from development and production to the final delivery of the aircraft.

Both L&T and Tata Advanced Systems have expressed strong interest in the AMCA Mk2 program, and discussions are currently underway to finalize their involvement. Their participation is expected to bring significant advantages, including enhanced production efficiency, the introduction of cutting-edge manufacturing technologies, and timely delivery of the aircraft to the IAF.

The AMCA program is a cornerstone of India's future air combat strategy. As a fifth-generation stealth fighter, the AMCA will boast advanced avionics, exceptional agility, and next-generation weaponry. The collaboration between HAL, L&T, and Tata Advanced Systems marks a significant shift in India's defence manufacturing landscape, paving the way for greater private sector involvement in high-technology aerospace projects.

This strategic partnership is expected to not only bolster India's defence capabilities but also contribute to the growth of the domestic aerospace industry, fostering innovation and creating new employment opportunities. The AMCA program, with its emphasis on indigenous technology and private sector collaboration, is poised to become a shining example of India's growing prowess in defence manufacturing.

 

[sanket]

Good news, I was a hundred times saying AMCA will be manufactured by private players & 3 private sector players have shown interest. Some comedians were asking names.

 

[Enforcer]

Why wait for AMCA MK2? Why not MK1? The faster we privatize it, the better it is for India.

One great thing about Private Industry is that we can sue them in court if they fail to address issues. Also if a servicemember looses his life due to faulty equipment, his family can sue the company and get proper compensation. That also forces private companies to be more through with quality and testing.

 

[AK S]

Why wait for AMCA MK2? Why not MK1? The faster we privatize it, the better it is for India.

One great thing about Private Industry is that we can sue them in court if they fail to address issues. Also if a servicemember looses his life due to faulty equipment, his family can sue the company and get proper compensation. That also forces private companies to be more through with quality and testing.

The private sector is averse to the risk of investing in financially demanding and uncertain government ventures. After MK1, most of these things will be behind them. So AMCA Mk2 is indeed doable by the private sector. Mk1 is extremely risky, and even the bravest will dither.

 

[swatkats_razor]

It's good that the private sector has been roped in for AMCA.

But it would have been even better if Tejas Mk2 or Mk3 would have been envisioned to be rolled out of a private sector assembly line.

Starting with a simpler supply line, which a 4th-gen aircraft would entail, would have given breathing room for the private integrator to fine-tune its logistics in place, before going in for the bleeding-edge supply chain and logistics which AMCA would benefit from.

 

[swatkats_razor]

The private sector is averse to the risk of investing in financially demanding and uncertain government ventures. After MK1, most of these things will be behind them. So AMCA Mk2 is indeed doable by the private sector. Mk1 is extremely risky, and even the bravest will dither.

Not at all. As a matter of fact, Tejas Mk-2 and AMCA Mk-1 would be less of a risk.

Private sector involvement did not materialize simply because no player was ready to apprentice under HAL. The bigger contractors were ready to get involved early on as long as they got to lead the project without involving HAL.

 

[Hritik Tyagi]

I think there should be a joint venture of Tata, Bharat Forge, Mahindra, Adani, L&T, Godrej...to lead private defence manufacturing and product development in our country. The government should also incentivize these companies.

 

[Rinku Pandey]

Another visionary step taken by GOI. AMCA Mk1 will be a 4.5th gen fighter with an F414 engine. Currently, there is no engine for AMCA Mk2, but since it will be rolled out in 2040, they have ample time to build a fifth-gen engine.

 

[The_rED_dEVIL]

Why wait for AMCA MK2? Why not MK1? The faster we privatize it, the better it is for India.

One great thing about Private Industry is that we can sue them in court if they fail to address issues. Also if a servicemember looses his life due to faulty equipment, his family can sue the company and get proper compensation. That also forces private companies to be more through with quality and testing.

I hope now HAL will understand the importance of on-time delivery. Ever-shifting timelines are expected with a monopoly as they have no fear of losing orders knowing MoD and IAF have no other options. They have 14+ major projects, which is too much for any company to handle. (Fighter jets – Tejas, Mk2, AMCA, TEDBF; Helicopters – ALH, LUH, Prachand, IMRH; Trainers – HTT-40, HJT-36, HLFT-42; Engines – HTFE-25, HTSE-1200, and it goes on…)

Even the US does not go for this many projects at once. Alternatively, they have multiple vendors for their projects, creating competition and the will to execute orders. (Boeing, Lockheed Martin, Northrop Grumman, Bell, Sikorsky, General Atomics…) So does Russia, China.

We need multiple companies in the aerospace and defence sector like the Navy has 5-6 shipyards as alternatives if one fails to deliver ships on time. Also, go for other engine manufacturing companies like Godrej Aerospace.

 

[jasveer singh]

Why not AMCA mk1 itself to the private sector? Why is it being awarded to HAL? If not complete, 80 to 70% of mk1 given to private. So from 40 mk 1, 30 aircraft production should be done by the private sector. After the first 10 aircraft by HAL, the rest should be transferred to manufacturing private firms.

 

[Krishnendu Chatterjee]

The private sector is averse to the risk of investing in financially demanding and uncertain government ventures. After MK1, most of these things will be behind them. So AMCA Mk2 is indeed doable by the private sector. Mk1 is extremely risky, and even the bravest will dither.

Moreover, HAL has invested considerably in upgrading its infrastructure in the recent past. The initial batch of a new aircraft has to be built by a company with past experience. Let HAL streamline the assembly line; later, private companies may mass-manufacture.

 

[dhiraj60]

If we want timely deliveries involvement of private sector is necessary & it's right step too what ever orders given to L&T etc is necessary as L&T has delivered before time