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SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG

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In a landmark move to strengthen India’s indigenous defense capabilities, the Indian government has established a high-level panel tasked with accelerating the production of the Light Combat Aircraft (LCA) Tejas, particularly the advanced Mk1A variant. This initiative, driven by the Ministry of Defence (MoD), seeks to address chronic delays, enhance the Indian Air Force’s (IAF) combat readiness, and reduce reliance on foreign imports under the Atmanirbhar Bharat framework.

A key proposal under consideration is the partial handover of manufacturing responsibilities—including a significant share of the forthcoming order for 97 Tejas Mk1A units—to private sector companies, potentially reshaping the production landscape currently dominated by Hindustan Aeronautics Limited (HAL).

Announced in early February 2025, the committee—chaired by Defence Secretary Rajesh Kumar Singh and including representatives from the IAF, HAL, and other stakeholders—has been given a one-month deadline to submit its findings. Its primary objectives are to identify production bottlenecks, streamline processes, and recommend strategies to meet the IAF’s urgent needs. With the IAF’s squadron strength languishing at 31 against a sanctioned 42, the timely induction of Tejas Mk1A jets is critical to counter threats from China and Pakistan.

A focal point of the panel’s deliberations, as reported by idrw.org, is the involvement of private sector firms. HAL, which secured a Rs 48,000 crore contract for 83 Tejas Mk1A units in 2021, faces an additional order for 97 jets later this year, valued at over Rs 65,000 crore. However, doubts persist about HAL’s ability to scale production to meet these demands, prompting the panel to explore outsourcing options.

The committee favors transferring a portion of the 97-unit Tejas Mk1A order to private companies, a move that could alleviate pressure on HAL’s overstretched facilities. Sources told idrw.org that firms already in talks for the Advanced Medium Combat Aircraft (AMCA) program—India’s fifth-generation stealth fighter—are strong contenders. These companies could initially focus on Tejas Mk1A assembly, leveraging HAL’s expertise, before expanding their role.

HAL’s ambitious claim of achieving a 30-jet annual production rate by 2027 has met skepticism, particularly due to uncertainties surrounding engine supplies from General Electric (GE). The F404 engines powering the Mk1A have faced delays, with GE offering no firm assurances beyond a March 2025 delivery restart for 12 units annually. This bottleneck has cast doubt on HAL’s ability to meet the IAF’s timeline, which aims for all 180 Mk1A jets (83 + 97) by 2031-32.

To address this, idrw.org reports suggest HAL may be asked to cede its Nashik facility—the third Tejas Mk1A production line—to a private entity. The proposed arrangement involves a long-term lease-like agreement, where the private firm would first master local assembly under HAL’s guidance. Over time, it could assume full control of the facility, transforming it into a dual-purpose hub for both Tejas Mk1A and eventual AMCA production. This aligns with the government’s vision of a Special Purpose Vehicle (SPV) comprising HAL, ADA (Aeronautical Development Agency), and a private partner for AMCA manufacturing.

The plan isn’t without hurdles. HAL’s Nashik plant, operational since 2023, is a strategic asset, and relinquishing it risks operational friction. Private firms, while eager, lack HAL’s decades of fighter jet assembly experience, requiring significant technology transfer and training. GE’s engine supply remains a wild card—without a steady flow beyond the promised 12 annually, even a private line could falter. Moreover, the IAF’s public frustration, voiced by Air Chief Marshal A.P. Singh in 2024, underscores the urgency; any misstep could deepen the squadron crisis.

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