Two Private sector companies having a majority stake in a new consortium company that will also have minority staked by the state-owned Hindustan Aeronautics Limited (HAL) will be in charge of the development of the Prototypes of the AMCA, after completion of the Phase-I stage by the Two Next Generation Technology Demonstrator (NGTD) that have been planned that will act as a Technology Demonstrator for India’s 5.5th Generation fighter jet called AMCA.

AMCA project will be pushed through the Special Purpose Vehicle (SPV) route where Two Indian private entities will be provided with up to 75 percent of the government funding in the form of ‘Grant-in-Aid’. The remaining 25 percent of the project cost will have to be borne by the Two Indian private entities. The initial task of the consortium that will have a majority stake by these two private entities and the third being HAL will be to manufacture Prototypes of the AMCA in the Phase-II stage of the project.

DRDO’s AMCA Project Director AK Ghosh has confirmed that the NGTD-1 rollout will happen in 2024 with the first flight planned in 2025 followed by NGTD-2 in 2026. NGTD-1 and NGTD-2 will be manufactured by HAL, Initial plan was to manufacture NGTD-1 and NGTD-2 also by this consortium but it couldn’t take off due to various issues.

ADA had started a search for Indian vendors in 2018 to be partnered for the AMCA program. Defense companies having a positive net worth and were not have been blacklisted by the Central or State Government were asked to send in their proposals. Some Indian vendors along with the Boeing India subsidiary of Boeing had submitted their bids but at this point, it is not clear which companies are in the foray for the contract.

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