New Delhi: State-run Hindustan Aeronautics Limited (HAL) is out of the Rs 15,000-crore project to build five prototypes of India’s 5th generation fighter aircraft Advanced Medium Combat Aircraft (AMCA) programme.
The ones who are in competition now to bag the project are the TATA group, a solo bidder, followed by a consortium led by Bharat Forge Ltd, a part of the Kalyani Group, with defence public sector undertaking (DPSU) BEML Ltd and private-sector defence electronics firm Data Patterns (India) Ltd.
Another consortium led by private firm L&T, with DPSU Bharat Electronics Ltd (BEL) and private firm Dynamatics Technologies, is also in the race.
Among the companies in the fray, only TATA has the experience of setting up a final assembly line which they have done for the C-295 transport aircraft in partnership with Airbus.
Other firms, (including TATA), have experience of making components, wings and fuselage for various foreign original manufacturers besides for the Tejas programme.
Sources in the defence establishment said that all three private players who have made it to the final list have very little technical differences and the final selection will be based on who the Lowest Bidder is.
This means that India’s 5th generation fighter project will be built by an Indian private firm which will work in tandem with Aeronautical Development Agency (ADA) of the DRDO.
This would be a mega contract and opens up the country to have two distinct fighter aircraft manufacturing lines—HAL with the Tejas fleet and a private firm with the AMCA.
Defence Minister Rajnath Singh had last May decided to open up AMCA to both State-owned and private players.
This went against the established practice, where HAL would have been the natural choice as the production agency, which would have then tied up with private players for manufacturing components and parts.
Sources said it was felt that HAL already has a large order book and should focus on delivery of those. It was also felt that there needs to be a parallel assembly line of fighter aircraft in the country.
In total, there were seven firms who were vying for the contract that will make them eligible for manufacturing the series production which is slated to begin by 2035.
The other contenders were Adani Defence & Aerospace in the lead with private precision engineering company MTAR Technologies, engineering solutions provider Goodluck India Ltd with defence firm Axiscades Technologies Ltd, and State-run BrahMos Aerospace Thiruvananthapuram Ltd; and another tie-up comprising ICOMM Tele Ltd — a group company of Megha Engineering & Infrastructures Ltd and PTC Industries Ltd.
The sources explained that the reason why HAL got out of the race despite being seen as a front-runner by some, was the revenue to order book calculations.
As per the requirements, this ratio mattered and it was made clear that order book size cannot be three times the revenue, which is in the case of HAL.
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What happens next
The sources said that the final winner would be selected within three months and the contract would be signed.
Asked whether the companies would be setting up their own assembly line first because it will take time, the sources said that certain arrangements are being made.
It was not yet clear what these arrangements are.
The sources said that ADA’s facilities would be used for various stages of the prototype development including testing and certification. As per the timeline decided, the five prototypes of India’s own fifth-generation fighter are set to be rolled out by 2031. The first prototype is expected to be rolled out by 2028 using the GE 414 engine.
The IAF plans to have seven squadrons of the AMCA, starting 2035, when the series production will start.
As per the expression of interest issued by ADA last year, the duration of the contract for development, prototyping, flight test and certification of AMCA shall not exceed eight years from the effective date of contract.
(Edited by Ajeet Tiwari)
Also Read: India doesn’t want to rely solely on HAL for fighter jets. AMCA project is the first step