A report in the Hindustan Times on Wednesday (3-Feb-2026), citing sources, states that Hindustan Aeronautics Limited (HAL) has been excluded from India's Advanced Medium Combat Aircraft (AMCA) program, the nation's ambitious fifth-generation stealth fighter project.

This marks the first time the state-run aircraft manufacturer will play no role in one of India's most critical military aviation initiatives. Officials familiar with the developments confirmed the decision on Tuesday, signalling a pivotal shift towards greater private sector involvement in defence manufacturing.

Last year, seven consortia comprising public and private firms submitted bids in response to a call for expressions of interest (EoI) issued by the Defence Research and Development Organisation's (DRDO) Aeronautical Development Agency (ADA).

Of these, only three met the stringent mandatory criteria and have advanced to the next evaluation phase, which involves submitting cost bids for constructing five AMCA prototypes and one structural test specimen.

HAL's bid, partnered with two smaller firms, failed to satisfy the essential requirements, sources revealed. The identities of the three shortlisted consortia remain undisclosed for now, but the contract is anticipated to be awarded to the lowest bidder within the next three months. This competitive process underscores the government's push for efficiency and innovation in indigenous defence projects.

Competitors in the fray included prominent names such as Tata Advanced Systems Limited, Adani Defence and Aerospace, and a Larsen & Toubro (L&T) consortium with Bharat Electronics Limited (BEL).

Others were Goodluck India alongside BrahMos Aerospace Thiruvananthapuram Ltd and Axiscades Technologies, as well as Bharat Forge Ltd in partnership with BEML Ltd and Data Patterns. These entities responded to ADA's EoI in June last year, aimed at identifying firms capable of prototyping, flight testing, and certifying the stealth fighter.

The EoI followed the defence ministry's announcement of a fast-track development model for AMCA, emphasising equal opportunities for public and private players. This industry partnership approach received approval from Defence Minister Rajnath Singh last year, at a juncture when HAL was widely seen as the natural frontrunner given its monopoly on fighter jet production in India.

A committee of senior DRDO officials initially evaluated the seven bids, with their recommendations reviewed by a high-level panel chaired by Defence Secretary Rajesh Kumar Singh. Shortlisted firms must demonstrate the ability to establish manufacturing facilities for AMCA's series production, with the entire contract—from development and prototyping to flight testing and certification—not exceeding eight years.

The timeline remains ambitious: the first prototype is slated for its maiden flight in 2029, full development by 2034, and entry into production by 2035. This urgency stems from regional security dynamics, particularly China's deployment of J-20 fifth-generation fighters, the rollout of J-35 stealth aircraft—which Pakistan eyes for acquisition—and tests of purported sixth-generation platforms like J-36 and J-50.

In 2024, the Cabinet Committee on Security sanctioned AMCA's design and prototype development at an estimated cost of ₹15,000 crore. The Indian Air Force's modernisation blueprint calls for around 120 stealth fighters, equivalent to six squadrons, operational from 2035 onwards. These aircraft will anchor future air combat capabilities.

The initial two squadrons will feature the MK-1 variant, powered by American GE F-414 engines. Subsequent squadrons will deploy the superior MK-2 version, fitted with a more potent 120-kilonewton thrust-class engine under development through a joint venture between France's Safran and DRDO's Gas Turbine Research Establishment (GTRE). Approval for this collaboration, including nine prototypes over 12 years with full technology transfer and intellectual property rights to India, is expected imminently.

HAL's challenges were foreshadowed by its leadership. Last year, HAL chief DK Sunil noted in an interview that the EoI's qualifying clauses disadvantaged the firm, particularly a stipulation docking marks for order books exceeding three times turnover—HAL's stood at nearly eight times. Despite partnering with others, HAL pursued the bid but has now been side-lined. HAL officials claim no prior knowledge of the exclusion.

This development reflects broader efforts to diversify India's defence industrial base, reducing reliance on HAL amid criticisms of delays in projects like the TEJAS fighter. By fostering competition, the government aims to accelerate AMCA's delivery, bolstering India's strategic deterrence against evolving threats in the Indo-Pacific.

Based On Hindustan Times Report