India Shortlists Tata, L&T, Bharat Forge for Next-Gen Fighter Jet Program

New Delhi: The government will shortly issue tenders to three private sector companies that have been shortlisted to develop and manufacture next-generation fighter jets under the Advanced Multirole Combat Aircraft (AMCA) programme.

People familiar with the matter said technical and legal terms have been finalised and three companies - Tata Advanced Systems Limited, Larsen & Toubro and Bharat Forge - are likely to receive the tenders by this month-end.

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The companies had earlier been shortlisted for the contract based on their technical competency. The earlier shortlist had left out public sector Hindustan Aeronautics Ltd from the competition.

The winner of the contract will now be decided on commercial bids presented by the three companies. The winner will work with the Aeronautical Development Agency to produce five prototypes of AMCA at a new testing facility being built in Andhra Pradesh.

The people said the new facility is expected to be ready within a year, with a target of getting the prototypes manufactured and flown by 2032. The same facility is also likely to be used to develop unmanned combat aircraft under the Ghatak programme that was also recently cleared by the defence ministry.

The people cited above said once AMCA prototypes are proven, a larger tender would be issued by the Indian Air Force for acquisition of a significant number of the jets. This tender is likely to see wider industry competition, including a bid by HAL. However, the company selected to develop the prototypes will have a natural advantage for the larger order as well.

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The defence ministry has allocated an indicative budget of ₹15,000 crore for the prototype stage. The final order, however, is expected to be in several multiples of that, once the aircraft is proven and ordered by IAF.

The new, fifth generation fighter jet, is slated to become India's mainstay aerial platform from the mid-2030s. After development, IAF is expected to order 120 jets in the first batch, with deliveries slated to start by 2035.

The new jets will incorporate the latest military technologies, including stealth, AI integration, long-range targeting capabilities and the ability to jointly operate with unmanned aerial systems.