Hindustan Aeronautics Limited Invites Indian Private Firms for Joint Venture in AMCA Manufacturing
NEWS
3/23/20253 min read
March 23, 2025 – Hindustan Aeronautics Limited (HAL), a cornerstone of India’s aerospace industry, has issued an Expression of Interest (EOI) on March 12, 2025, inviting Indian private firms to collaborate as joint venture (JV) partners in the ambitious manufacturing program for the Advanced Medium Combat Aircraft (AMCA). This initiative aims to bolster India’s indigenous defense capabilities by producing approximately 126 AMCA aircraft for the Indian Air Force (IAF) in a time-bound and quality-driven manner. The deadline for EOI submissions is May 7, 2025, at 23:59 hrs IST.
Background and Objective
HAL, renowned for its role in designing, developing, and manufacturing combat and trainer aircraft such as the LCA Mk-1, LCA Mk-1A, LCA AF Mk-2, HTT-40, and HJT-36, is spearheading the AMCA project—a fifth-generation stealth fighter jet. The EOI seeks to establish a collaborative ecosystem involving Indian private firms to manufacture aircraft assemblies, perform looming, equipping, integration, flight testing, and ultimately hand over the aircraft to the IAF. The AMCA is modular, with key components including the front fuselage, center fuselage, rear fuselage, wings, horizontal and vertical tails, landing gears, and control surfaces.
The goal is to create a robust supply chain and manufacturing network, leveraging the expertise and capabilities of private industry while HAL retains its role as the lead integrator. This partnership aligns with India’s push for self-reliance in defense production under the "Make in India" initiative.
Joint Venture Structure
The proposed JV will consist of HAL and four Indian private firms. HAL will hold a 50% equity stake, while each of the four partners will have a 12.5% share. Each partner will be assigned a specific work package, ensuring a division of responsibilities across the aircraft’s modular assemblies. The work packages include:
Work Package-1: Supply of fully equipped front fuselage and landing gear assembly.
Work Package-2: Supply of fully equipped center fuselage, air-intake, and aileron assembly.
Work Package-3: Supply of fully equipped rear fuselage, horizontal tail, flaperon, and flap assembly.
Work Package-4: Supply of fully equipped wing and vertical tail assembly.
Each partner will provide a turnkey solution for their assigned package, encompassing tool design, material procurement, manufacturing, and assembly, under HAL’s coordination. The tentative production schedule outlines the delivery of 9 aircraft assemblies annually from 2035-36 to 2038-39, followed by 10 per year from 2039-47, totaling 126 aircraft. However, HAL emphasizes that these figures are provisional.
Roles and Responsibilities
HAL will oversee the project as the lead integrator, providing drawings, numerical master geometry, and station diagrams to partners for tooling and manufacturing. It will also handle final assembly, system integration, acceptance testing, and operational clearance from regulatory bodies like RCMA and CEMILAC. The JV partners, meanwhile, are tasked with delivering fully built assemblies ready for coupling, supporting HAL during integration, and adhering to strict quality and timelines.
The JV will deliver the finished aircraft to the IAF, with revenues and profits shared proportionally to equity stakes. Partners will also profit from their supplied components, though pricing must align with HAL’s targets to keep the aircraft competitively priced.
Selection Process
The EOI process involves multiple stages. HAL will shortlist 2-3 firms per work package based on their capacity, capability, and prior experience—particularly favoring firms involved in the LCA Mk-1 project. Shortlisted firms will sign a Non-Disclosure Agreement (NDA) before receiving detailed technical data for commercial bidding. The final selection will hinge on the lowest (L-1) package pricing, followed by negotiations on investments, equity, and JV modalities.
Investment and Infrastructure
Partners are expected to invest in additional facilities and tooling specific to their work packages, recovering costs through pricing and amortization. HAL retains the right to nominate the JV’s chairman, while partners can appoint directors proportional to their shareholding.
Submission and Terms
Interested firms must submit their EOIs by May 7, 2025, adhering to the RFI document’s instructions. HAL reserves the right to withdraw or modify the EOI without explanation and reject incomplete or late proposals. The process is governed by Indian law, with jurisdiction in Bangalore courts. Notably, the Government of India is not a party to the contract, and HAL operates as an independent entity.
Strategic Implications
The AMCA project represents a leap forward in India’s aerospace ambitions, aiming to deliver a stealth fighter with advanced capabilities to counter regional threats. By involving private firms, HAL is fostering a collaborative industrial base, enhancing technological expertise, and reducing reliance on foreign suppliers. This JV model could set a precedent for future defense projects, blending public-sector leadership with private-sector innovation.