Indian commercial companies are being invited to join Hindustan Aeronautics Limited (HAL) as joint venture (JV) partners in the construction of the Advanced Medium Combat Aircraft (AMCA) through an Expression of Interest (EOI). By producing about 126 AMCA aircraft for the Indian Air Force (IAF), this project, which was unveiled on March 12, 2025, seeks to improve India’s defensive capabilities. Submissions must be made by May 7, 2025, at 23:59 IST.
The AMCA project, a fifth-generation stealth fighter plane, is being led by HAL, a major force in India’s aerospace industry. By utilising private companies’ experience in manufacturing different aeroplane assemblies, the partnership aims to create a strong manufacturing ecosystem. While private partners will manage particular work packages pertaining to aircraft components, such as fuselage and wing assembly, HAL will continue to serve as the project’s principal integrator.
Building a cooperative environment for the manufacturing of aircraft assemblies, looming, equipping, integrating, testing, and handing over to customers is the aim of EOI.
HAL and four carefully chosen private companies will make up the proposed joint venture. With each private partner owning 12.5%, HAL will retain a 50% equity position. These partners will share responsibilities as follows:
Each partner must adhere to HAL’s quality standards and schedules while providing comprehensive solutions for the packages they have been assigned.
HAL will supply the necessary design documentation and supervise the last stages of testing and assembly as the lead integrator. Delivering completely built parts that are prepared for integration into the aircraft is the responsibility of the joint venture partners. To guarantee that everyone benefits from their contributions, revenue sharing will be proportionate to equity stakes.
HAL will shortlist companies based on their qualifications and experience over the several rounds of the EOI process. Prior to getting comprehensive technical information for bidding, chosen companies will be required to sign a Non-Disclosure Agreement (NDA). Competitive pricing and ensuing discussions about investments and equity distribution will determine the ultimate choice.
India’s aerospace aspirations have advanced significantly with the AMCA project, which aims to create a cutting-edge stealth fighter to tackle regional security issues. HAL is creating a cooperative industrial environment that improves technological capabilities and lessens reliance on foreign suppliers by enlisting private firms in this quest. Future security initiatives in India could benefit from this JV model, which combines private sector innovation with public sector control.
