SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG
India’s ambitious Advanced Medium Combat Aircraft (AMCA) program, a fifth-generation stealth fighter jet initiative, has sparked a fierce competition among several states to host its production facility. Bangalore, Nashik, Coimbatore, Lucknow, and Hyderabad are actively bidding to offer land and incentives to the consortium of companies forming to lead the AMCA program.
According to sources cited by idrw.org, the establishment of the AMCA production line is expected to generate significant local employment, drive revenue through GST collections, and attract aerospace suppliers, creating a robust economic ecosystem that could remain active for three to four decades. As the Aeronautical Development Agency (ADA) begins identifying partners for the program, states are aggressively pitching their cases to secure this prestigious project.
The AMCA, developed by the ADA in collaboration with Hindustan Aeronautics Limited (HAL) and private sector partners, is a cornerstone of India’s push for self-reliance in defense manufacturing under the “Make in India” and “Atmanirbhar Bharat” initiatives. Designed to feature stealth technology, supercruise capability, and advanced avionics, the twin-engine multirole fighter aims to bolster the Indian Air Force’s (IAF) capabilities against advanced platforms like China’s J-20. With production expected to commence in the early 2030s and a projected requirement of 250 units across its Mk1 and Mk2 variants, the AMCA program promises long-term economic and strategic benefits for the host state.
The production facility will not only manufacture the AMCA but also serve as a hub for future aerospace programs, ensuring sustained economic activity. The influx of suppliers setting up facilities near the production line will further amplify revenue streams through taxes and job creation, making the project a coveted prize for state governments.
The Contenders: A Multi-State Bidding War
Several states have emerged as frontrunners in the race to host the AMCA production facility, each leveraging unique advantages to attract the consortium:
- Bangalore (Karnataka)
Karnataka, home to HAL’s headquarters and a thriving aerospace ecosystem, is under pressure to retain the AMCA production line within its borders. The state is offering additional land near Tumakuru, where HAL already operates a helicopter manufacturing facility. Bangalore’s proximity to HAL’s Aircraft Research and Design Centre (ARDC), which is spearheading AMCA development, ensures seamless integration with R&D efforts. Karnataka’s leadership, including Minister for Large and Medium Industries MB Patil, has emphasized the state’s 65% share in India’s aerospace production and its established supply chain, arguing that relocating the project would disrupt the existing ecosystem. - Nashik (Maharashtra)
Nashik’s HAL facility, already a key production hub for the Tejas Mk1A Light Combat Aircraft (LCA) and Sukhoi Su-30 MKI, is a strong contender due to its existing infrastructure. Initially, plans focused on establishing a new facility in Coimbatore, but recent reports suggest a shift toward repurposing Nashik’s facility for AMCA production. Upgrading the Nashik plant could be significantly cheaper than building a greenfield facility, with estimates suggesting substantial cost savings. Nashik’s established aerospace ecosystem, skilled workforce, and experience with complex aircraft assembly make it an attractive option. The facility is set to roll out its first Tejas Mk1A in June 2025, demonstrating its operational readiness. - Coimbatore (Tamil Nadu)
Coimbatore was initially proposed as the site for a new AMCA production facility under the Tamil Nadu Defence Industrial Corridor (TNDIC). The state’s robust industrial base and proximity to private aerospace firms involved in the AMCA program bolster its case. However, the focus later shifted to Nashik due to cost considerations. Despite this, Tamil Nadu remains a contender, leveraging its defense corridor and growing aerospace manufacturing capabilities to attract the consortium. - Lucknow (Uttar Pradesh)
Uttar Pradesh is making a strong bid, with Lucknow emerging as a potential site. The state’s defense industrial corridor, coupled with its investor-friendly policies, positions it as a viable candidate. Lucknow’s strategic location and access to a large workforce could support the long-term needs of the AMCA program. The state government is actively pitching incentives to attract the consortium, emphasizing the economic ripple effects of hosting such a facility. - Hyderabad (Telangana)
Hyderabad, a burgeoning aerospace hub, is also in the race, bolstered by contributions from local firms like VEM Technologies, which recently delivered the first centre fuselage assembly for the Tejas Mk1A to HAL. Telangana’s proactive policies, modern infrastructure, and proximity to DRDO facilities make it a compelling choice. The state is highlighting its role in the AMCA program’s supply chain and its potential to support future aerospace initiatives.
The consortium, led by HAL and private partners, will ultimately decide the facility’s location based on factors such as capital investment, infrastructure availability, and long-term viability. Converting Nashik’s existing facility could reduce costs compared to building a new plant, but greenfield sites in Coimbatore, Lucknow, or Hyderabad offer scalability and modern infrastructure. Karnataka’s push to keep the project near Bangalore underscores the state’s strategic leverage, given HAL’s entrenched presence.
Repurposing Nashik’s facility, which cost ?150 crore to set up for Tejas Mk1A production, could save significant capital compared to establishing a new facility estimated to cost billions. Nashik’s third production line, inaugurated in April 2023, is designed to produce eight Tejas Mk1A jets annually, with plans to scale up to 32 aircraft per year. Transitioning this line to AMCA production by 2029, as Tejas Mk1A production winds down, could streamline timelines and leverage existing expertise.
However, greenfield sites in other states offer long-term advantages. Andhra Pradesh’s recent proposal to allocate 10,000 acres in Lepakshi-Madakasira, though not part of the core contenders listed, highlights the allure of expansive land parcels for creating comprehensive aerospace ecosystems. Similarly, Coimbatore, Lucknow, and Hyderabad are pitching large-scale facilities with integrated R&D and testing capabilities, which could outweigh Nashik’s short-term cost benefits.
The decision, expected within the next few years, will hinge on the consortium’s priorities and the Centre’s strategic vision. The AMCA program’s success is critical for India’s defense self-reliance, and the chosen location must balance cost, scalability, and geopolitical considerations.
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