The tender for India’s Advanced Medium Combat Aircraft has been formally re-issued, marking a significant step forward in the country’s fifth-generation fighter development.

Bids are scheduled to open on 28 August 2026 at 2 PM, setting the stage for renewed competition among industry partners to participate in this flagship defence project.

The revised project plan introduces several critical changes. Flight testing requirements have been expanded, with five prototypes mandated and a total of 1,800 test flights to be completed by the 84th month of the program.

This extended testing schedule reflects the complexity of validating stealth, avionics, propulsion, and weapons integration in a fifth-generation platform.

Financial rules have also been updated. The State Bank of India’s Marginal Cost of Lending Rate (MCLR) will now replace LIBOR as the benchmark for interest calculations.

This adjustment aligns the project’s financing framework with domestic banking standards, reducing exposure to international rate fluctuations and ensuring greater predictability in long-term cost management.

Maintenance costs for prototypes have been recalibrated. They are now estimated at 5% of the unit cost per year, indexed to both the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). This dual-indexing mechanism is designed to provide a more accurate reflection of inflationary pressures on operational expenses, ensuring realistic budgeting throughout the development phase.

New testing equipment has been added to the program’s infrastructure. A Lightning Test Rig will be introduced to validate aircraft resilience against electrical discharges, while a Mobile EMI/EMC setup will enhance the ability to test electromagnetic compatibility in varied environments.

These additions are crucial for ensuring survivability and reliability in combat conditions, particularly against electronic warfare threats.

Material handling responsibilities have been clarified. The Aeronautical Development Agency will insure government-owned materials only during transit. Once delivered, the partner company will assume responsibility for storage under strict rules. This shift places greater accountability on the industry partner, ensuring tighter control over sensitive materials and reducing risks of mishandling.

The re-issued tender comes at a pivotal moment for the AMCA project. India’s defence establishment views the aircraft as central to long-term force modernisation, with the program expected to deliver a stealth fighter capable of countering regional threats and reducing reliance on imported platforms.

The updated plan reflects lessons learned from earlier negotiations and testing phases, while also incorporating financial and technical safeguards to keep the project on track.

Agencies