State-run Hindustan Aeronautics Limited (HAL) has reportedly been eliminated from the race to develop India’s fifth-generation fighter jet under the Advanced Medium Combat Aircraft (AMCA) programme, according to CNN-News18 report.
Three private sector-led consortia have been shortlisted, with the final development partner expected to be selected within the next three to four months. HAL, however, said it has not received any official communication regarding its exclusion.
“HAL has not received any official communication in this regard and, therefore, is not in a position to comment on these reports at this stage. HAL is committed to keeping all stakeholders fully informed of all developments,” the company said in a statement.
The AMCA programme, India’s most ambitious combat aviation project to date, aims to deliver an indigenous fifth-generation stealth fighter to meet the long-term operational requirements of the Indian Air Force (IAF). The project is being led by the Aeronautical Development Agency under the Defence Research and Development Organisation (DRDO).
Defence Secretary Rajesh Kumar confirmed that three bidders remain in contention following the initial technical screening.
“We were surprised by the private sector response. We’ve done the initial pre-qualification and there are three remaining. Thereafter, you can expect the RFP to be issued to all three companies for submitting cost bids for production of five prototypes of the AMCA aircraft,” he told CNBC-TV18.
While the Defence Secretary did not name the shortlisted firms, sources said the final contenders are private sector-led consortia, including Tata Advanced Systems Limited; Larsen & Toubro in partnership with Bharat Electronics Limited and Dynamatic Technologies; and Bharat Forge, which has teamed up with BEML and Data Patterns. HAL, which had participated as part of a consortium, failed to clear the mandatory technical and financial thresholds.
Officials familiar with the evaluation process said key criteria included technical capability, financial strength, existing order book, and the ability to absorb the risks associated with developing a fifth-generation combat aircraft. HAL’s existing commitments, its order book is understood to be nearly eight times its annual turnover, were cited as a factor that raised concerns over capacity and execution bandwidth.
The shortlisted bidders will compete for a project estimated at around Rs 15,000 crore to develop five AMCA prototypes and one structural test specimen. Sources indicated that the final selection is expected to be made on a lowest-cost (L1) basis after meeting minimum technical requirements.
The Defence Secretary also said the first AMCA prototype is expected to roll out within the next three to four years, with production timelines dependent on the outcome of flight testing and evaluation.
HAL’s exclusion is significant given its central role in India’s combat aviation ecosystem. The public sector undertaking currently manufactures the Light Combat Aircraft (LCA) Tejas, is responsible for upgrading the Su-30MKI fleet, and produces platforms such as the HTT-40 basic trainer, Light Combat Helicopters and Advanced Light Helicopters.
However, several HAL-led programmes have faced delays in recent years, including the LCA Tejas Mk-1A and Mk-2, largely due to supply-chain challenges and engine availability issues. These delays have drawn scrutiny from both the government and the IAF at a time when fighter squadron strength remains under pressure.
Responding to reports about its exclusion, HAL emphasised its long-term growth and programme pipeline.
“HAL would like to reiterate that it has a robust confirmed order book, providing strong revenue visibility, and a healthy production and execution pipeline extending up to 2032,” the company said.
It added that it is advancing several strategic programmes, including the Indian Multi Role Helicopter (IMRH), LCA Mk-2 and the Combat Air Teaming System (CATS), while also diversifying into civil aviation platforms such as the Dhruv NG, Hindustan 228 and the SJ-100.
The AMCA is envisaged as a twin-engine, medium-weight stealth fighter with advanced avionics, sensor fusion, internal weapons bays, long-range strike capability and manned-unmanned teaming. The aircraft is expected to form the backbone of the IAF from the mid-2030s.
Production of the AMCA is planned to begin after 2030. The first batch of 40 aircraft will be the Mk-1 variant powered by the GE F-414 engine, while later Mk-2 versions are planned to feature a more powerful indigenous engine.
DRDO’s Gas Turbine Research Establishment has already issued an Expression of Interest to identify an Indian industry partner for developing the high-thrust aero engine, with France’s Safran expected to play a key role.
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