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Aeronautical Development Agency (ADA) has started the process for getting CCS clearance for the over Rs 15,000 crore project to build the fifth-generation advanced medium combat aircraft (AMCA), which will be implemented through Special Purpose Vehicle (SPV) that is aimed at enabling concurrent engineering and production in faster timelines that will see the participation of Private sector company.

Boeing’s Indian subsidiary is considering participation in India’s AMCA program that will see the SPV route where private players will have a majority stake with a minority stake in Government owned companies like Hindustan Aeronautics Limited (HAL). has learned from people familiar with the matter that Boeing India plans to study the Indian government’s SPV model and whether it can be feasible and be allowed as Indian subsidiaries of a foreign OEM to participate in Indian fighter jet programs.

SPV model clearly says that companies need to create assets and cash flow for the operation of the company that will be created with upfront orders being discussed before partners are announced. Private sector companies in the program will get orders for the aircraft once it clears developmental flights.

ADA along with HAL will develop 5 Prototypes of AMCA for developmental flights that will be carried out for 6-7 years before it is cleared for production sometime in 2032 with assured orders for 140 units that will likely cross the 200-unit mark by the turn of 2050.

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