MoD to Enhance Private Sector Role in AMCA Program Amid Workshare Concerns

Описание: In response to concerns raised by a leading private
sector company over limited participation in India's
ambitious Advanced Medium Combat Aircraft
(AMCA) program, the Ministry of Defence (MoD) is
actively considering a proposal to increase the
scope and share of work allotted to private industry
partners. The move comes after the company
expressed dissatisfaction that its current role,
primarily limited to airframe manufacturing, offers
insufficient returns on investment. India flag


The AMCA program, spearheaded by the
Aeronautical Development Agency (ADA) and
Hindustan Aeronautics Limited (HAL), is India's
flagship 5th-generation stealth fighter project. While
the government has emphasized the importance of
involving private players to boost self-reliance and
speed up delivery timelines, current allocations have
been viewed as inadequate by industry
stakeholders.


According to sources familiar with the matter, the
MoD is now reviewing the structure of the public-
private collaboration model for the AMCA. Plans are
underway to offload additional responsibilities-
potentially including sub-system development,
avionics integration, structural assembly, and
ground support systems-to interested private
sector firms. This would significantly increase the
percentage of workshare for private companies,
ensuring more substantial participation andimproved returns. India flag


The private sector's demand stems from the capital-
intensive nature of investments needed to support
advanced aerospace manufacturing. Without a
proportional workshare or assurance of long-term
contracts, companies face challenges in justifying
infrastructure development and technology
acquisition. Increasing the scope of involvement not
only makes financial sense for these companies but
also aligns with the government's broader 'Make in
India' and 'Atmanirbhar Bharat goals.


This development comes at a crucial time, as the
AMCA program is poised to enter the prototype
development phase once final approval from the
Cabinet Committee on Security (CCS) is granted
The government aims to roll out the first prototype
by 2028, with serial production anticipated in the
early 2030s. India flag


If implemented, the revised outsourcing framework
will not only incentivize private investment but also
reduce the program's reliance on state-run entities
This diversification of industrial participation is
expected to accelerate production rates, enhance
innovation, and establish a more resilient and
capable domestic aerospace ecosystem


The final decision on the revised structure and
expanded private sector role is expected to be
announced in the coming months, following detailedconsultations between the MoD, ADA, HAL, and key
industry stakeholders.
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