HAL Sidelined, Private Giants Shortlisted for India’s AMCA Stealth Jet
•February 4, 2026
0
Why It Matters
The shift signals a major policy change toward a competitive, private‑driven aerospace base, potentially speeding up India’s stealth capability while challenging HAL’s dominance. It also reflects strategic urgency to close the stealth gap with China and Pakistan.
Key Takeaways
- •India shortlists Tata, L&T, Bharat Forge for AMCA
- •HAL excluded after decades of fighter monopoly
- •Prototype phase budget estimated ₹15,000 crore
- •First flight targeted 2028‑29, induction by 2035
- •Private firms lack full fighter‑jet development experience
Pulse Analysis
The Indian defence establishment is rewriting its aerospace playbook by moving the AMCA programme out of Hindustan Aeronautics Limited’s hands and into the private sector. Under the original strategic‑partnership framework, HAL would have acted as the lead system integrator alongside the Aeronautical Development Agency. By shortlisting Tata Advanced Systems, Larsen & Toubro and Bharat Forge, the Ministry of Defence is betting on faster decision‑making, tighter cost control and access to global supply chains. This marks the first time a private consortium can steer a fifth‑generation fighter from concept to serial production, a clear departure from the PSU‑centric model that has defined Indian combat aviation for decades.
The urgency behind the decision is driven by a rapidly evolving regional threat environment. China already fields operational J‑20s and is field‑testing J‑35s, while Pakistan is courting the same platform, creating a looming stealth gap for the Indian Air Force. The AMCA’s prototype phase carries an estimated ₹15,000 crore budget, with five prototypes and a structural test article slated for development within eight years and first flight expected by 2028‑29. If successful, the programme could deliver 120 aircraft, a multi‑billion‑dollar contract that would cement India’s indigenous fighter capability by the mid‑2030s.
Despite the strategic upside, the private firms face a steep learning curve; none have built a fighter jet from scratch, and any delay could leave the IAF without a viable stealth option. This risk has already sparked speculation about a stop‑gap purchase, with Russia offering the Su‑57 and promising technology transfer. The outcome will reshape India’s defence industrial base: a successful private‑led AMCA could attract further foreign investment and accelerate ‘Atmanirbhar’ ambitions, while a setback may revive calls to reintegrate HAL or seek off‑the‑shelf solutions.
HAL Sidelined, Private Giants Shortlisted for India’s AMCA Stealth Jet
India shortlists private firms for AMCA stealth fighter, HAL excluded
In a watershed moment for Indian military aerospace, the Ministry of Defence has formally shortlisted three private‑sector titans—Tata Advanced Systems Limited (TASL), Larsen & Toubro (L&T) and Bharat Forge—to compete to lead the development and manufacturing of the country’s fifth‑generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA).
The most striking headline is the name missing from the list: Hindustan Aeronautics Limited (HAL). For the first time in the history of indigenous combat aviation, the state‑run monolith has been excluded from the cockpit of a frontline fighter programme.
The development was first reported today in Indian newspapers Economic Times and Hindustan Times.
“Various media reports regarding the Advanced Medium Combat Aircraft (AMCA) programme have come to HAL’s attention. HAL has not received any official communication in this regard and, therefore, is not in a position to comment on these reports at this stage. HAL is committed to keeping all stakeholders fully informed of all developments.”
The decision marks a decisive end to HAL’s decades‑long monopoly and signals a fundamental shift in New Delhi’s strategy. By placing the AMCA largely in private hands (the winning firm will still work with the state‑governed Aeronautical Development Agency), the government is betting on a more competitive, efficient and technologically agile industrial base to secure India’s skies.
Programme details
The AMCA programme was originally structured under a unique Strategic Partnership model designed to foster public‑private synergy, where one partner would be HAL. With HAL now dropped from the race, the shortlisted firms are entering a high‑stakes contest to become the “Industry Partner” that will work alongside the ADA, the DRDO’s aviation design arm.
As Livefist understands it, the winner will be tasked with:
-
Prototype Development: Co‑developing five AMCA prototypes and one structural test specimen.
-
Manufacturing Ecosystem: Establishing a dedicated, state‑of‑the‑art production line capable of “series production” independently.
-
Time‑Bound Execution: Completing the entire development cycle—from prototyping to flight testing and certification—within a strict eight‑year window.
With an indicative budget of ₹15,000 crore for the prototype phase alone, the stakes are astronomical. The winner will eventually oversee the production of at least 120 aircraft, a contract that could be worth hundreds of billions of dollars over two decades, with the first aircraft coming online roughly a decade from now.
HAL’s exclusion
HAL’s exclusion is not merely a lost contract but a structural demotion. Historically, HAL has been the default integrator for every Indian fighter, from the Marut to the Tejas. The government’s decision to disqualify HAL—reportedly due to a clause that penalised firms with massive, undelivered order books (HAL’s ratio is nearly 8:1 relative to turnover)—is a clear red card for the PSU’s chronic delays.
In its statement, HAL also said:
“HAL would like to reiterate that it has a robust confirmed order book, providing strong revenue visibility, and a healthy production and execution pipeline extending up to 2032. HAL is simultaneously advancing multiple strategic programmes, including the Indian Multi‑Role Helicopter (IMRH), LCA Mk2 and Combat Air Teaming System (CATS), which will further strengthen its technological capabilities and long‑term growth prospects. These programmes are expected to enter production post‑2032. HAL is also diversifying its portfolio in the civil aviation segment with platforms such as the Dhruv NG, Hindustan 228 and the SJ 100, which will enhance revenue and provide sustainable growth in the future. HAL has strong fundamentals and is committed to delivering sustained year‑on‑year growth through consistent performance.”
The shift mirrors the Tata‑Airbus C295 partnership, which established India’s first private military aircraft assembly line in Vadodara. That project proved the private sector could handle complex aerospace integration with international partners; HAL was specifically kept out of that programme as well. By keeping HAL out of the AMCA effort, the government is making it clear that “Atmanirbhar Bharat” (Self‑Reliant India) does not mean a “HAL‑reliant India”.
Background
The seeds of this exclusion were sown years ago. In 2020, Livefist first reported that HAL was spearheading a plan to create a joint venture (JV) with a private firm and the DRDO to lead the AMCA. At the time, it seemed like a compromise to keep HAL at the helm while satisfying the private sector’s hunger for participation.
However, the plan collapsed under the weight of “work‑share” anxieties. Industry insiders suggest that private giants like L&T were deeply skeptical of the JV model, fearing HAL would retain the high‑value systems and decision‑making power, leaving the private partner as little more than a glorified fabricator. The private sector demanded a level playing field where they could act as the Lead System Integrator (LSI). The MoD’s current shortlisting confirms that those concerns have been heard: the private sector is no longer just a junior partner, but a primary driver with actual skin in the final game.
Geopolitical urgency
The urgency to get the AMCA airborne has never been higher. India’s neighbourhood is rapidly turning stealthy.
-
China: Already deployed several squadrons of the J‑20 and is testing the J‑35 and even purported sixth‑generation platforms.
-
Pakistan: Recent reports indicate Islamabad is in advanced talks to acquire the Chinese J‑35 stealth fighter, which could fundamentally tip the balance of stealth air power in the subcontinent.
With the AMCA’s first flight not expected before 2028‑2029 and induction only by 2035, India faces a risky “stealth gap”. The decision to move to the private sector could be seen as a desperate attempt to bypass the sluggishness that has plagued HAL‑led projects like the Tejas LCA, even accounting for systemic failures, governmental delays and industrial inertia.
Risks and alternatives
The new path carries significant risks. While Tata, L&T and Bharat Forge have stellar reputations, none have ever built a fighter jet from scratch. The transition from components to platforms is a steep learning curve. If the private sector stumbles, India will have no fallback option, having already sidelined its only experienced aircraft manufacturer.
This brings up the inevitable question of a stop‑gap acquisition. With the IAF’s squadron strength dwindling and the AMCA still a decade away, the pressure to buy an off‑the‑shelf stealth jet is mounting.
Russia has sensed this opening. Moscow has been increasingly vocal, offering the Su‑57 to India with promises of deep technology transfer and joint production at existing Su‑30MKI facilities. While New Delhi remains committed to the indigenous AMCA, the sheer speed of Chinese and Pakistani advancements may force a rethink.
0
Comments
Want to join the conversation?
Loading comments...