India Inc is all geared up to expand into a sector so far dominated by PSUs. ET has reported today, based on information from sources, that the government will shortly issue tenders to three private sector companies—Tata Advanced Systems Limited (TASL), Larsen & Toubro (L&T) and Bharat Forge—that have been shortlisted to develop and manufacture next-generation fighter jets under the Advanced Multirole Combat Aircraft (AMCA) programme. This is India's most ambitious defence manufacturing project, and private sector giants helming it is a clear sign of how India's defence manufacturing is undergoing a structural change. Once AMCA prototypes are proven, a larger tender would be issued by the Indian Air Force for acquisition of a significant number of jets, sources told ET.
This tender is likely to see wider industry competition, including a bid by Hindustan Aeronautics Ltd (HAL), a PSU. However, the company selected to develop the prototypes will have a natural advantage for the larger order as well. The earlier shortlist had left out HAL from the competition.
