New Delhi: Hindustan Aeronautics Limited (HAL) is no longer in the running to lead the development of India’s ambitious fifth-generation Advanced Medium Combat Aircraft (AMCA) project.
According to a report published by The New Indian Express, HAL was eliminated at the financial evaluation stage of the AMCA programme, not because of lack of capability, but the company’s existing order book, which is understood to be nearly eight times its annual turnover.
Concerns have been raised about whether HAL that has developed the Light Combat Aircraft Tejas Mk1, Mk1A and is engaged in the Tejas Mk2 project, has the ability to take on additional high-risk development commitment, sources have told the newspaper.
Only three of the seven consortia, comprising public and private sector firms, that submitted bids for the programme last year, have met the mandatory technical criteria and progressed to the next stage. This involves submission of cost bids. These shortlisted bidders will compete for the Rs 15,000-crore project to build five AMCA prototypes and one structural test specimen.
The three consortia advancing in the process are led by Larsen & Toubro in partnership with Bharat Electronics Limited (BEL) and Dynamatic Technologies; Tata Advanced Systems Limited, which has bid independently; and Bharat Forge, which has teamed up with BEML and Data Patterns, sources have said.
The final selection is expected to be made on a lowest-cost (L1) basis, rather than through a quality-and-cost-based system adopted in some recent unmanned aerial vehicle programmes. This means that once minimum technical thresholds are met, pricing will play a decisive role in determining the development partner.
The bidding process for the AMCA ran in parallel with a wider technical assessment of Indian private-sector companies for manufacturing major aircraft structural assemblies, an exercise that has exposed gaps in the domestic aerospace industrial base. While a handful of firms demonstrated credible capabilities in composites, metallic structures and quality systems, many others fell short in areas critical for fighter-grade production, sources have said.
“The evaluation flagged limited experience in manufacturing large composite assemblies, inadequate autoclave capacity and a heavy dependence on subcontracting for core processes, issues that are viewed unfavourably in programmes involving safety-critical combat aircraft structures,” it was explained.
“In several cases, companies also fell short on certification requirements and financial depth, which raised concerns about their ability to sustain long, complex development and production cycles,” sources added.
While intent is clear, industrial depth remains uneven, particularly when measured against the demands of next-generation fighter programmes, it was revealed.
The AMCA is being developed by the DRDO’s Aeronautical Development Agency as a twin-engine, medium-weight, fifth-generation fighter aircraft tailored to Indian Air Force requirements. The aircraft is expected to feature a stealth-optimised airframe, internal weapons bays, advanced sensors and sensor fusion and multi-role capabilities ranging from air superiority and close combat to deep precision strike.
Production of the AMCA is planned to start after 2030. The first prototype is expected to make its maiden flight around 2029, with the development phase likely to conclude by 2034, followed by series production a year later.
The initial batch of 40 aircraft will be the Mk-1 variant, powered by the GE F-414 engine, while subsequent Mk-2 versions are planned to be equipped with a more powerful engine to be developed in India.
DRDO’s Gas Turbine Research Establishment (GTRE) issued an Expression of Interest last week to identify an Indian industry partner for manufacturing and assembly of an indigenous high-thrust aero engine for the AMCA, with France’s Safran expected to play a key role.












