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The Advanced Medium Combat Aircraft, or AMCA, will now be contested by private industry, as the State-run Hindustan Aeronautics Limited (HAL) is out of the race on technical grounds to build India’s fifth-generation stealth fighter.
“Some of the evaluation criteria for the prototype tender are weighted against us. For instance, if your order book exceeds a certain threshold, you get zero out of 100 under that specific criterion,” HAL CMD DK Sunil had disclosed last year, which has come true following the shortlisting of the probable consortium by the Ministry of Defence.
Three bidders have been shortlisted. They are Tata Advanced Systems, a consortium led by Larsen & Toubro, and another led by the Kalyani Group, according to ministry insiders. The final selection is expected in the coming months.
Without revealing the names, Defence Secretary Rajesh Kumar Singh confirmed that seven consortiums had responded to the expression of interest in an interview given to a private news channel. After pre-qualification, only three met the criteria. They will receive the request for proposal (RFP) within 2 to 3 months. Cost bids will follow later.
Why HAL Did Not Make the Cut
The PSU’s exclusion is linked to evaluation criteria under the AMCA tender. One key parameter penalised companies with oversized order books. Firms whose order book was more than three times their annual turnover received zero marks under that head.
HAL’s order book stands at about Rs 2.52 lakh crore. This is more than eight times its FY25 turnover of around Rs 30,000 crore.
HAL CMD had flagged the risk months earlier. In a July 2025 interview, he said some criteria were “weighted against” the company. He pointed to the order book clause as a potential hurdle.
Officials familiar with the process said the intent was to ensure dedicated capacity for AMCA. The programme demands focus, speed and the ability to absorb complex design and manufacturing work.
The move marks a sharp shift in India’s combat aircraft ecosystem.
For decades, HAL has dominated fighter production. It builds the Su-30MKI. It manufactures the Tejas. It also handles upgrades, overhauls and helicopter production. But delays have dogged several programmes.
The Tejas Mk-1A delivery schedule has slipped. Supply chain and engine issues slowed production. The Tejas Mk-2 is yet to fly. These setbacks have drawn concern as IAF squadron strength remains stretched.
The AMCA project is seen as too critical to risk similar slippages.
The Rs 15,000 crore prototype programme involves building a structural test article and five flying prototypes. The winner will also be the natural choice for series production.
That contract will be far bigger.
IAF plans to induct around 126 AMCA fighters, forming seven squadrons. Series production is expected to begin around 2035. The first prototype flight is projected for 2028 or 2029.
The aircraft is being designed by the Aeronautical Development Agency under DRDO. It will be a twin-engine stealth fighter. It will feature internal weapons bays, sensor fusion, advanced avionics and manned-unmanned teaming.
In May 2025, the Defence Ministry approved a new execution model. It allowed private and public firms to compete on equal terms. Joint ventures and consortia were permitted.
That decision has now reshaped the outcome.
Tata Advanced Systems has bid on its own. The Kalyani Group is leading a consortium with BEML and Data Patterns. L&T is heading another with Bharat Electronics. Dynamatic Technologies later joined the L&T-BEL team.
HAL had led a consortium that included Vem Technologies. It failed to qualify.
Other contenders, including Adani Defence-led and smaller industry tie-ups, were also eliminated.
If one of the private players wins, it will end HAL’s monopoly in fighter aircraft manufacturing. It will also set up a second combat aircraft production line in India.
For the private sector, AMCA is a breakout moment. For HAL, it is a rare and telling setback.
Ravi Shankar
Dr Ravi Shankar has over two decades of experience in communications, print journalism, electronic media, documentary film making and new media.
He makes regular appearances on national television news channels as a commentator and analyst on current and political affairs. Apart from being an acknowledged Journalist, he has been a passionate newsroom manager bringing a wide range of journalistic experience from past associations with India’s leading media conglomerates (Times of India group and India Today group) and had led global news-gathering operations at world’s biggest multimedia news agency- ANI-Reuters. He has covered Parliament extensively over the past several years. Widely traveled, he has covered several summits as part of media delegation accompanying the Indian President, Vice President, Prime Minister, External Affairs Minister and Finance Minister across Asia, Africa and Europe.
