The contest to identify a production partner for India's next-generation stealth fighter has entered a tense phase, with Hindustan Aeronautics Ltd (HAL) raising objections to the criteria framed by the Aeronautical Development Agency (ADA), according to a report in The Economic Times.
HAL is understood to have told ADA that some of the qualifying benchmarks - especially those linked to companies' financial performance - put it at a disadvantage.
ADA had issued an expression of interest (EOI) in June, inviting bids from Indian firms to build at least five prototypes of the Advanced Multirole Combat Aircraft (AMCA). The deadline for responses has now been pushed to September 30, and consultations have already taken place with potential contenders, the report said.
Under the defence ministry's plan, public and private players will compete to become development partners for the programme, first producing prototypes and later vying for larger production orders once the jet is cleared for service.
Before the EOI was floated, several private-sector firms had indicated to the ministry that they would struggle to match HAL, given the state-run giant's existing infrastructure and long experience in military aviation.
Industry representatives also sought assurances that technical requirements would not tilt the playing field. To level the ground, the ministry decided that ADA would make key infrastructure for the prototypes available to all and would not extend preferential treatment to government-owned firms, ET reported.
HAL's main grievance, sources told the newspaper, concerns the EOI's emphasis on a revenue-to-order-book ratio as a qualifying factor. Because of its massive workload - an order book of nearly ₹2 lakh crore - HAL scores poorly on that metric and risks missing out on points. The clause, officials explained, is aimed at ensuring work is distributed and new aerospace hubs emerge beyond HAL.
The rule could also prompt HAL to collaborate with private companies through a joint venture or consortium so that tasks are shared and fresh capacity is created in the domestic aerospace industry, the report added.
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