The indigenous Advanced Medium Combat Aircraft (AMCA) would be manufactured through a Special Purpose Vehicle (SPV) jointly formed between three private companies that will hold the majority stake in the new company that will be formed with Hindustan Aeronautics Limited (HAL), Defence Research and Development Organization (DRDO) having a minority stake in the new joint venture.

ADA already is discussing the roles these companies will play in the distribution of the work and responsibility that each company will need to carry on in the AMCA program. Private sector companies will be in charge of manufacturing seven squadrons of AMCA jets that will be around 140 units that will have a guaranteed assured clause so that companies that will be part of the consortium also have a profitable venture.

Hindustan Aeronautics Limited (HAL) will be in charge of manufacturing 5 pre-production aircraft at an estimated cost of 900 crores each at its present facility in Bengaluru where employees of the private sector companies will also be given hands-on experience in the assembly and fabrication of the first 5 jets.

A new manufacturing unit for the AMCA program will be established in Coimbatore which is one of the nodal cities that is part of the Tamil Nadu Defence Corridor. Other major supply chain vendors for the AMCA program are likely to crop up in other nodal cities like Salem and Hosur.

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