Hindustan Aeronautics Limited (HAL) has issued an Expression of Interest (EOI) inviting Indian private firms to participate as joint venture (JV) partners in the production of the Advanced Medium Combat Aircraft (AMCA). This initiative, announced on March 12, 2025, aims to enhance India's defence capabilities by manufacturing approximately 126 AMCA aircraft for the Indian Air Force (IAF). The deadline for submissions is set for May 7, 2025, at 23:59 IST.

Background And Objectives

HAL, a key player in India's aerospace sector, is spearheading the AMCA project, which is designed as a fifth-generation stealth fighter jet. The collaboration seeks to establish a robust manufacturing ecosystem by leveraging the expertise of private firms in producing various aircraft assemblies. HAL will remain the lead integrator, overseeing the project while private partners will handle specific work packages related to aircraft components, including fuselage and wing assemblies.

The objective of EOI is to build a collaborative ecosystem for Manufacturing of Aircraft Assemblies, Looming, Equipping, Aircraft Integration, Flight Testing and Aircraft Handing Over to Customer.

Joint Venture Structure

The proposed JV will consist of HAL and four selected private firms. HAL will maintain a 50% equity stake, with each private partner holding 12.5%. Responsibilities will be divided among these partners as follows:

Work Package-1: Front fuselage and landing gear assembly
Work Package-2: Centre fuselage, air-intake, and aileron assembly
Work Package-3: Rear fuselage, horizontal tail, flaperon, and flap assembly
Work Package-4: Wing and vertical tail assembly

Each partner is expected to deliver complete solutions for their assigned packages while adhering to HAL's quality standards and timelines.

Roles And Responsibilities

As the lead integrator, HAL will provide essential design documents and oversee final assembly and testing phases. The JV partners are responsible for delivering fully assembled components ready for integration into the aircraft. Revenue sharing will be proportional to equity stakes, ensuring that all parties benefit from their contributions.

Selection Process

The EOI process includes multiple stages where HAL will shortlist firms based on their capabilities and experience. Selected firms will sign a Non-Disclosure Agreement (NDA) before receiving detailed technical data for bidding. The final selection will depend on competitive pricing and subsequent negotiations regarding investments and equity distribution.

Conclusion

The AMCA project represents a significant advancement in India's aerospace ambitions, aiming to produce a state-of-the-art stealth fighter to address regional security challenges. By involving private companies in this endeavour, HAL is fostering a collaborative industrial environment that enhances technological capabilities while reducing dependence on foreign suppliers. This JV model may pave the way for future defence projects in India, combining public sector oversight with private sector innovation.

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