India opens bid for indigenous 5th gen stealth fighter jet; HAL to compete with Tata, L&T, Adani

India is about to manufacture its fifth-generation fighter jet, the Advanced Medium Combat Aircraft (AMCA), and has invited Expression of Interest (EOI) for its prototype development. With this move, the country made a momentous shift in defence procurement and industrial participation policy.

About the EOI

The EOI issued by the Aeronautical Development Agency (ADA) is about to shortlist Indian Companies (owned and controlled by resident Indian citizens) to develop and build prototypes within eight years, with ₹15,000 crore allocated for prototype development.

As specified by the ADA, the applicant may be a single company, a joint venture or a consortium of companies, which are technically capable of building the prototypes, supporting flight tests and certification of AMCA.

It added that those applying should be reputed Indian companies experienced in the Aerospace & Defence sector, with the capability to absorb the design of AMCA and have adequate exposure in the field of development & engineering, manufacturing, equipping, integration, testing, quality management, and customer support.

The shortlisted entity must be capable of setting up a manufacturing facility for series production.

The duration of the contract for development, prototyping, flight test and certification of AMCA shall not extend eight years from the effective date of the contract, according to the EOI issued by ADA.

The last date for submission is 16 August.

Approval by Rajnath Singh

Defence Minister Rajnath Singh had approved the execution model for the AMCA project last month, which provides equal opportunities to both private and public sectors on a competitive basis. 

If we observe the global scenario, China has already placed its J-20 stealth fighters into active service. It is also building the J-35, which Pakistan is reportedly planning to buy. Geopolitically, it brings India, Pakistan and China into a new dynamics, with stealth aircraft quickly becoming the new baseline for air superiority.

While India has been offered foreign fifth-gen fighters, including the US F-35 and Russia’s Su-57, New Delhi has chosen to stick with its indigenous plan.

“America is paving the way to provide India the F-35 stealth fighters,” said US President Donald Trump in February.

Earlier this year, Russia proposed the joint production of the Su-57 in India. However, India has not accepted either offer.

Tough competition ahead for HAL

This indicates that any single entity will not be considered a natural choice, and everyone will have to bid to win the contract.

This means Hindustan Aeronautics Limited (HAL), which has been the only entity in India to manufacture fighter planes, will now have to compete against private companies, such as Tata Advanced Systems Limited, Adani Defence and other interested players to bag the contract to build the prototype.

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