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The Defense Research and Development Organization (DRDO) and Hindustan Aeronautics Limited (HAL) have reached an important decision regarding the development of the Advanced Medium Combat Aircraft (AMCA) prototypes.

It has been agreed that private sector companies will play a significant role in the construction of these prototypes, and they will also be involved in the assembly of the jets before a special purpose vehicle (SPV) is established to engage Indian industries on a large scale.

To begin with, the prototypes of the AMCA will be partially built by private sector companies. However, the assembly of these prototypes will take place at HAL facilities. This collaboration between HAL and private sector companies marks an important step in promoting indigenous defence manufacturing capabilities in India.

The subsequent production of the AMCA aircraft will be carried out at a separate facility, which will be owned by a new company. The majority ownership of this new company will be held by a private sector company, while HAL will have a minority stake.

Under this framework, a substantial portion of the aircraft’s fuselage will be manufactured by private-sector companies. HAL will then assemble these components at its facilities. Importantly, HAL’s facilities will also be utilized to train private sector employees in the assembly of the aircraft. This training program will equip them with the necessary skills to later manufacture the aircraft in the new facility owned by the SPV.

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