Shares of Hindustan Aeronautics Limited (HAL) hit an intraday low of over 8% on Tuesday with the stock currently trading at Rs 4,236 a piece. On the contrary, shares of Larsen & Toubro (L&T) and Bharat Forge shares surged 1.69% and 2.34%, respectively. The stock reaction came after the defence ministry shortlisted private players for the fighter jet program in which HAL lost out to Tata Advanced Systems Limited (TASL), L&T, and Bharat Forge.
Three major private sector companies have been shortlisted to develop and manufacture India’s next-generation fighter aircraft under the prestigious Advanced Multirole Combat Aircraft (AMCA) programme. The final selection is expected within the next three months, according to a report in The Economic Times.
The defence ministry has evaluated technical bids from seven Indian firms and has shortlisted TASL, L&T, and Bharat Forge. HAL, which manufactures most of India’s military aircraft, has not made the cut.
Final Selection in Three Months
The final selection is expected to take place after the shortlisted companies submit detailed commercial proposals for manufacturing prototypes of the next generation jets, ET reported.
The report stated the bidders had to prove their mettle in terms of technical capability to absorb the AMCA design and also demonstrate substantial experience in development, engineering, manufacturing, equipping and testing, among other things.
What Selected Company Will Get
The selected company will work alongside the Aeronautical Development Agency (ADA) to build five AMCA prototypes. The government has earmarked Rs 15,000 crore for this initial stage. Once the aircraft is proven, the Indian Air Force is expected to place a major order which would initially be 120 fighter jets, with deliveries targeted around 2035.
The AMCA programme is considered India’s largest-ever military research and development initiative. Designed as a fifth-generation fighter, the aircraft is expected to eventually become the backbone of India’s air combat fleet from the mid‑2030s.
Features of the Next-Gen Fighter
The AMCA jets will incorporate advanced technologies, including:
- Stealth design
- AI-assisted operations
- Long-range targeting systems
- Ability to work in coordination with unmanned aircraft
Touted to be India’s biggest ever military research and development programme, the consignment for the selected company is expected to go up significantly in the coming years as more advanced variants are developed.
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