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In a significant stride towards bolstering its indigenous defense capabilities, India is set to introduce a unique Special Purpose Vehicle (SPV) model that involves private players in the development of two cutting-edge fighter jet programs. The Advanced Medium Combat Aircraft (AMCA), a fifth-generation fighter jet program, and the Twin Engine Deck-Based Fighter (TEDBF), a 4.5th generation fighter program for the Indian Navy, will see private players take the lead under this innovative approach.

The SPV model, specifically designed to enhance collaboration between the government and private sector, aims to leverage the strengths of both parties while streamlining the procurement process. Unlike conventional routes where government entities lead the projects, this approach envisions private players taking a majority stake in the SPV. This not only fosters greater ownership and accountability among private players but also expedites decision-making and reduces procedural delays.

The Indian defense establishment, in collaboration with the Defense Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL), is actively engaging with multiple private sector companies. These companies are poised to form a consortium that will undertake the manufacturing of these advanced fighter jets within a newly established facility in Coimbatore, Tamil Nadu.

The strategic advantage of this approach lies in its potential to create a dynamic ecosystem that combines the innovative capabilities of the private sector with the experience and knowledge of government entities. By allowing private players to hold a majority stake, the SPV model promotes a sense of ownership and shared responsibility, driving greater efficiency and agility in the development and manufacturing process.

The introduction of the SPV model will also pave the way for increased investments in research and development, leading to technological advancements that align with global standards. This will not only enhance the self-reliance of India’s defense sector but also position the country as a formidable player in the global defense market.

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