HAL Excluded from AMCA Fighter Jet Project: Why India’s State-Owned Firm Missed Out

India’s highly anticipated fifth-generation fighter jet program, the Advanced Medium Combat Aircraft (AMCA), has entered a crucial phase—but Hindustan Aeronautics Limited (HAL) has been left out of the race. Three private companies have been shortlisted to develop and manufacture the next-generation jets, with the final selection expected within the next three months.

Next-Gen Fighter Features
The new AMCA jets will feature cutting-edge military technologies, including advanced stealth capabilities, integration of artificial intelligence (AI), long-range targeting systems, and the ability to operate alongside unmanned systems. Key specifications are expected to include:

• Advanced stealth technology to evade enemy radar
• Superior aerial maneuverability and surface-strike capability
• Electronic warfare expertise for combat superiority
• Speeds up to Mach 2.15, carrying up to 27,000 kg payload
• Equipped with AESA radar and supercruise-capable missiles

Private Sector Shortlisted
According to The Economic Times, technical bids from seven Indian companies were reviewed before three were shortlisted: Tata Advanced Systems Limited, Larsen & Toubro, and Bharat Forge. HAL, along with other public sector firms, was excluded from this stage. The shortlisted companies will submit detailed commercial proposals for the development of AMCA prototypes, with the winner expected to be announced within three months. Selection criteria included technical understanding of the AMCA design, experience in development, engineering, manufacturing, testing, and overall project execution.

Bid Rules and Eligibility
The tender included a clause discouraging companies with large pending order books, ensuring that only firms with sufficient capacity and financial strength could compete. While several major Indian manufacturers participated, the shortlist was based strictly on technical expertise, manufacturing capabilities, and financial robustness.

Collaboration with ADA
The winning company will work closely with the Aeronautical Development Agency (ADA) to build five AMCA prototypes. The Ministry of Defence has allocated a tentative budget of ₹15,000 crore for the prototype stage. Once the aircraft are validated and ordered by the Indian Air Force (IAF), total orders are expected to multiply significantly.

Delivery Timeline and Scope
AMCA is poised to become India’s largest-ever military research and development program. The fifth-generation fighter jet is expected to serve as India’s primary air platform by the mid-2030s. The first batch may include 120 aircraft, with deliveries expected to begin by 2035. Future variants of the jet are expected to expand the fleet considerably.

HAL’s Challenges
HAL’s exclusion has raised questions, particularly as it already holds contracts for 97 Tejas Mark-1A jets, valued at ₹62,370 crore. Earlier, in February 2021, HAL was contracted to deliver 83 Advanced Tejas aircraft for ₹46,898 crore, but the IAF has yet to receive the first unit. IAF Chief Air Chief Marshal A.P. Singh had expressed frustration over repeated project delays.

HAL attributes these delays to supply issues with the American-made General Electric FN-404-IN20 engines, as well as setbacks in weapons integration and firing trials, all of which fall under HAL’s responsibility. The first unit of Tejas remains undelivered to date.