What Happened
- India's Advanced Medium Combat Aircraft (AMCA) programme, the country's fifth-generation stealth fighter project, will be led by a private sector consortium for the first time, with HAL (Hindustan Aeronautics Limited) excluded from the competition
- Three consortia have been shortlisted: Tata Advanced Systems Limited (TASL) bidding independently; Larsen & Toubro partnered with Bharat Electronics Limited (BEL) and Dynamatic Technologies; and Bharat Forge teamed with BEML and Data Patterns
- HAL's exclusion is attributed to its existing order backlog — nearly eight times its annual turnover — and concerns about delivery track record
- The prototype rollout is planned for late 2026 or early 2027, with first flight expected in 2028, certification by 2032, and induction by 2034
- The Request for Proposal (RFP) is expected to be issued within three months
Static Topic Bridges
AMCA Programme — India's Fifth-Generation Fighter Aircraft
The AMCA is a twin-engine, stealth, multirole combat aircraft being developed for the Indian Air Force. It is classified as a 25-tonne class medium-weight fifth-generation fighter. The programme is managed by the Aeronautical Development Agency (ADA), a DRDO lab, which also developed the Tejas LCA.
- Design features: Internal weapons bay (for stealth), diverterless supersonic inlet (DSI), S-shaped air intake, radar-absorbing materials, and AESA radar
- Two variants planned: AMCA Mk1 (with GE F414 engine) and AMCA Mk2 (with an indigenous engine being developed under the Kaveri derivative programme or a co-developed engine)
- The Cabinet Committee on Security (CCS) approved the AMCA programme in March 2024 at an estimated cost of Rs 15,000 crore for five prototypes
- India will become only the fourth country (after the US, Russia, and China) to develop and produce a fifth-generation fighter, if the programme succeeds on schedule
- Other fifth-generation fighters globally: US F-22 Raptor and F-35 Lightning II; Russia Su-57; China J-20 and J-31/FC-31
Connection to this news: The shift from HAL to private sector leadership for the AMCA marks a watershed moment in India's defence manufacturing — it is the first time a combat aircraft programme of this scale will be led by a private Indian company.
Hindustan Aeronautics Limited (HAL) — Role and Challenges
HAL, established in 1940 in Bangalore, is India's primary aerospace and defence PSU. It has designed and manufactured fighters (HF-24 Marut, Tejas LCA), helicopters (Dhruv ALH, Prachand LCH), and licence-produced platforms (Su-30MKI, Jaguar, Hawk).
- HAL's current order book (2025-26): Approximately Rs 1.2 lakh crore, including 97 Tejas Mk1A fighters and 156 Prachand LCH
- Tejas Mk1A delivery delays: First delivery was due in February 2024; as of February 2026, only 5 aircraft are ready for delivery due to GE F404-IN20 engine supply bottlenecks
- HAL's annual turnover: Approximately Rs 30,000 crore (FY 2024-25)
- The order backlog to turnover ratio (approximately 4:1 to 8:1 by some estimates) has raised concerns about the company's capacity to take on new complex programmes
- HAL contributed significantly to AMCA's design phase, including aerodynamic configuration, structural design, and systems integration architecture
Connection to this news: HAL's exclusion from the AMCA competition, despite its foundational design contributions, reflects the government's strategic decision to leverage private sector capacity and speed while diversifying India's defence industrial base beyond public sector monopolies.
Strategic Partnership Model and Private Sector in Combat Aircraft
The entry of private sector companies into combat aircraft manufacturing is enabled by the Strategic Partnership (SP) Model introduced in DPP-2016. The AMCA programme represents the most advanced application of this policy.
- The SP Model was recommended by the Dhirendra Singh Committee (2015) to create a vibrant defence industrial ecosystem
- Four segments were identified for the SP Model: fighter aircraft, helicopters, submarines, and armoured fighting vehicles
- TASL (Tata Group) has experience in manufacturing airframe components for Boeing (AH-64 Apache fuselages), Lockheed Martin (C-130J empennage), and Airbus (A320 floor beams)
- L&T has built India's first indigenous nuclear-powered submarine (INS Arihant hull) and operates defence shipyard facilities
- Bharat Forge has expanded into aerospace through precision forging of aeroengine components and artillery systems
- FDI in defence: Up to 74% under automatic route; 100% through government approval route for access to modern technology
Connection to this news: The AMCA shortlisting demonstrates that the SP Model is maturing from policy to practice — the three shortlisted consortia represent India's most capable private defence companies, now competing for the most technologically demanding programme yet.
Key Facts & Data
- AMCA class: 25-tonne, twin-engine, fifth-generation stealth multirole fighter
- CCS approval: March 2024; estimated cost: Rs 15,000 crore for five prototypes
- Three shortlisted consortia: TASL; L&T + BEL + Dynamatic; Bharat Forge + BEML + Data Patterns
- Timeline: RFP in 3 months → prototype rollout late 2026/early 2027 → first flight 2028 → certification 2032 → induction 2034
- HAL current order book: ~Rs 1.2 lakh crore; includes 97 Tejas Mk1A + 156 Prachand LCH
- HAL Tejas Mk1A delivery status: 5 ready for delivery; 9 built and flown awaiting engines (as of February 2026)
- India's fighter squadron strength: ~31 squadrons against a sanctioned strength of 42 (IAF)