HAL and Private Firms Clash Over AMCA Production Fairness
The contest for manufacturing India’s Advanced Medium Combat Aircraft (AMCA) has intensified, with Hindustan Aeronautics Limited (HAL) challenging the Aeronautical Development Agency’s (ADA) selection criteria as allegedly biased in favor of private companies. With ADA having issued an Expression of Interest (EOI) in June 2025, both public and private firms are vying to participate as developmental partners, and the deadline for applications has been extended to September 30, 2025 to encourage broader participation. HAL contends that parameters such as the revenue-to-order book ratio penalize its large government-backed backlog, while private companies argue that HAL’s historic dominance and infrastructure create an uneven playing field, limiting opportunities for innovation and private sector growth. The government, determined to accelerate indigenous fighter jet production and meet the Indian Air Force’s urgent modernization needs amid regional threats, seeks to balance HAL’s expertise with a new competitive industrial ecosystem under the ‘Aatmanirbhar Bharat’ initiative. The outcome will shape whether India pursues a HAL-led consortium or opts for joint ventures and partnerships to ensure the AMCA program is robust, timely, and strategically advantageous for both public and private sectors.
