India has taken a decisive step toward expanding private-sector participation in defense aviation by shortlisting three consortia for the development of its fifth-generation Advanced Medium Combat Aircraft. In a landmark move, Hindustan Aeronautics Limited has been excluded from the program, ending its decades-long involvement in every major indigenous combat aircraft initiative.
The exclusion of HAL is reportedly linked to its substantial production backlog, which is said to be nearly eight times its annual revenue. Officials believe this workload would constrain HAL’s ability to execute the AMCA program on schedule. The shortlisted bidders include Larsen & Toubro in partnership with Bharat Electronics and Dynamatic Technologies, Tata Advanced Systems Limited as a standalone contender, and a Bharat Forge-led consortium that includes BEML and Data Patterns.
The AMCA prototype development contract, valued at roughly ₹150 billion ($1.66 billion), will be awarded on a lowest-cost basis. The winning bidder, expected to be announced within three months, will collaborate with the Aeronautical Development Agency to build five flying prototypes and a structural test platform by 2031. The overall development phase is planned to wrap up by 2034.
Once operational, the AMCA is expected to become the backbone of India’s future air combat fleet. The Indian Air Force plans to induct approximately 120 aircraft, beginning with Mk-1 variants powered by GE F414 engines, followed by Mk-2 versions equipped with a more powerful engine developed jointly with a foreign partner. The medium-weight, twin-engine fighter is designed around stealth principles, featuring internal weapons bays, integrated avionics, and sensor fusion, with the ability to supercruise up to Mach 2 while carrying a combat payload of around 1,500 kilograms.
