Tata Advanced Systems (TASL) and the Kalyani Group appear to be holding back from partnering with state-owned Hindustan Aeronautics Limited (HAL) as they position themselves to qualify for the production of parts for India's next-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA), a Business Standard report said on Thursday.
While other private-sector players, including L&T, have already formed alliances-such as L&T's tie-up with Bharat Electronics Limited (BEL)-TASL and Kalyani are reportedly exploring independent or alternative consortium strategies rather than joining HAL.
The Ministry of Defence had approved a Rs 15,000-crore plan in May to open the AMCA programme to private players, allowing them to participate individually, in joint ventures, or consortia. The Aeronautical Development Agency (ADA) issued an Expression of Interest (EoI) in June, setting the stage for private firms to engage in the developmental phase.
The September deadline for responding to the EoI is approaching, and sources cited by Business Standard indicate that Tata and Kalyani have largely finalised their strategies.
Industry insiders note that HAL's entrenched position as a Defence Public Sector Undertaking (DPSU) has prompted larger private companies to carefully evaluate their approach.
The EoI's eligibility criteria-such as a minimum order book of Rs 10,000 crore or 50 active aircraft orders, and limitations on leading consortium stakes-appear designed to balance DPSU dominance while keeping avenues open for competition.
Officials suggest that if major private-sector firms participate meaningfully, it could bolster India's push for defence self-reliance and introduce parallel production capabilities in a sector historically dominated by HAL.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
