India’s dream of developing the first 'Made in India' fifth-generation stealth fighter jets—the Advanced Medium Combat Aircraft (AMCA) project—is taking shape as public sector Hindustan Aeronautics Limited (HAL) and leading private sector defence companies such as Tata Advanced Systems, Kalyani Group, L&T, and Adani are going to soon bid for our future fighter jets.

If the public sector HAL was enjoying a monopoly in making defence aircraft in the past, the AMCA development will see private players participating in the project. In May, the government confirmed that any Indian company can bid independently, as a joint venture, or as a consortium. With the Expression of Interest (EoI) deadline approaching on September 30 for prototype development and production, competition is intensifying.

What are AMCAs, and why do we need them?

The AMCA is envisaged as a 5.5-generation Made in India fighter aircraft, with twin engines, medium-weight, advanced avionics, super‑cruise capability, internal weapons bays, and futuristic electronic warfare systems. The Aeronautical Development Agency (ADA) is leading the project under the Defence Research and Development Organisation (DRDO). The plan is to build five prototypes, with the first expected by 2027. The project cost is about ₹15,000 crore. The Indian Air Force (IAF) is expected to induct the AMCAs by 2035.

With the retirement of all the time-tested and mainstay MiG aircraft this week, IAF's fighter strength has now declined to the lowest ever 30 squadrons (one squadron is 18-20 aircraft), well below the sanctioned 42.5. Eight more squadrons of MiG-21, Mirage 2000, and Jaguars are also scheduled for retirement within a decade.

IAF wants to have seven AMCA squadrons or about 126 fighters, besides other indigenous next-generation fighters like Light Combat Aircraft (LCA) Tejas MK1A, MK2 and Russian Su-30MKIs, say sources.  

Neighbouring China has around 1,600 modern aircraft, including around 195 J-20 fifth-generation stealth fighters. China's fleet already includes more than 1,400 fourth-generation aircraft such as the J-11, J-15, J-16, Su-27, Su-30, and Su-35. Military experts say China is already developing its sixth-generation fighter aircraft.

Pakistan has also co-developed JF-17—a multi-role, twin-engine, 4.5-generation fighter—with China. Pakistan has bought 20 J-10CE fighter aircraft from China and is reportedly going to acquire 40 fifth-generation J-35A fighters from China.

Despite efforts to make India-made fighters, its own engine development is an unresolved issue for the country.  Sources say the plan is to have the first two squadrons of the AMCA powered by GE-F414 engines. The next phase will include a domestically manufactured engine, collaborating with international manufacturers such as Safran, GE, and Rolls-Royce.  

The contenders

Bharat Forge Ltd, part of the $3.5-billion Kalyani Group, has submitted its EoI partnering with state-run BEML Ltd and private-sector defence and aerospace electronics firm Data Patterns (India). While Bharat Forge is likely to hold a 50% stake, BEML will have 30% and the remaining 20% stake for Data Patterns, say sources.

Another major contender is Larsen & Toubro (L&T) in a strategic partnership with the public sector Bharat Electronics Limited (BEL). The partnership will leverage L&T’s expertise in developing strategic defence and aerospace platforms, along with BEL’s experience in defence electronics and systems, to jointly contribute to India’s fifth-generation fighter aircraft.

In the past, L&T and BEL have played a pivotal role in India’s indigenous Light Combat Aircraft (LCA) programme by supplying major aerostructure modules and developing mission-critical avionics and electronic systems. ''Both the organisations are leaders in our respective domains and our combined efforts will play a crucial role in bolstering national security and advancing self-reliance in defence technologies,” says S.N. Subrahmanyan, Chairman & Managing Director, L&T.

Tata group's defence arm, Tata Advanced Systems Limited (TASL), is expected to be another major contender for the project. TASL has already forayed into aircraft manufacturing by teaming up with Airbus to produce 40 Airbus C-295 military transport aircraft at its Final Assembly Line (FAL) in Vadodara, Gujarat.

The facility is also India's first private sector FAL for military aircraft. TASL also makes fuselages for Dassault's Rafale fighter jets and has experience in making aircraft components for various civil and military aircraft.

Adani Defence & Aerospace, which is building huge capabilities in the defence sector, is likely to be another major contender for the next-generation fighter jets. In February 2020, Airbus India and Adani Defence & Aerospace had signed an MoU to explore opportunities in the Indian and South Asian aerospace and civil aviation service sectors. Adani had entered into an MoU with Sweden’s fighter aircraft maker Saab in 2017 to jointly manufacture Gripen-E fighters in India, but the partnership was terminated, say sources.  

Mahindra Defence was earlier interested in the AMCA programme, but withdrew in the later stages, say sources. TASL, Adani, Mahindra, and HAL are yet to officially announce whether they will go alone or in partnerships to bid for the project.