AMCA 5.5Gen fighter to be manufactured by Private company with HAL

India is probably going to supply its next generation of fighter jets during a private sector-led venture , which could require investments of over Rs 2,500 crore from the chosen company but would catapult it into a get league capable of producing leading edge aeronautical systems. 

India’s leading aero manufacturer, state-owned Hindustan Aeronautics Ltd (HAL) is currently understanding the prices involved and therefore the structure of the planned JV for the assembly of the fifth generation Advanced Multirole Combat Aircraft (AMCA), with an ambitious target for 2028. 

HAL chairperson R Madhavan told ET that the preferential model is to offer the private sector a controlling stake within the venture and therefore the choice to take existing manufacturing infrastructure on lease to stay capital investment at a minimal. 

“We are going to be forming a JV between DRDO, HAL and a personal party. HAL will provide the infrastructure wherever possible in order that the entire cost of capital is reduced for the private partners. Preferably, we would like to stay our share below 50% in order that it becomes a personal entity,” the highest official said. 

Costs are currently being figured out and would depend upon the model planned and whether the prototype of subsequent generation fighters are going to be made by the JV or fabricated by HAL before the serial production starts. 

“The expectations is that the private sector will have to invest Rs 2,500-3,000 crore but the number could vary. We are suggesting that the prototype manufacturing be kept outside the JV in order that the capital requirement are often reduced,” Madhavan said. 

While the investment is high, the likelihood of producing next generation fighter jets may be a huge opportunity for the private sector, which has still to supply any major aviation platform. All major western defence manufacturers are privately held and are supported by government-funded labs and institutions whenever required. 

In the new defence acquisition procedure, a replacement category of procurement has been added to cater for technology transfer from DRDO and PSUs to the private sector for manufacturing of weapon systems. 

Details are being figured out but HAL is probably going to supply its existing facilities in Nasik to the private sector partner for manufacturing the AMCA within the future. “Most likely the prototypes are going to be made in Bangalore and therefore the production could happen in Nasik. We are looking around 2028 to start out production and that we want that the private sector gets the capacity of investing and creating a replacement ecosystem and HAL doesn't remain to be the sole production partner,” Madhavan said. 

While talks with potential industry partners has not yet started, the plan has generated interest in major players that have ventured into the defence sector. Only a couple of Indian companies have the capacity to take a position into such a venture but on the plus side, there's set to be an outlined and guaranteed order book, besides the business opportunity of maintaining the aircraft that might stay in commission for over three decades. 

DRDO chief G Satheesh Reddy and Air Chief Marshal RKS Bhadauria spoke on the AMCA at a seminar conducted by the Society of Indian Defence Manufacturers and therefore the Centre for aviation Studies: 

G Satheesh Reddy: once we started the LCA programme, we had only a couple of personal companies available. Today, we've over 18,000 companies and that we can get the entire airframe and avionics done by the industry. The AMCA are going to be a 5.5 Gen aircraft and that we try to figure out models in order that more and more of the industry partners with us. 

Air Chief Marshal RKS Bhadauria: The air force strongly supports the event of a fifth generation AMCA which will have sixth generation characteristics.