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India’s next generation fighter aircraft will be a join venture : HAL

India’s leading aero manufacturer, state-owned Hindustan Aeronautics Ltd (HAL) is currently working out the costs involved and the structure of the planned JV for the production of the fifth generation Advanced Multirole Combat Aircraft (AMCA), with an ambitious target for 2028.

India is likely to produce its next generation of fighter jets in a private sector-led joint venture, which could require investments of over Rs 2,500 crore from the selected company but would catapult it into a select league capable of manufacturing cutting edge aeronautical systems.

India’s leading aero manufacturer, state-owned Hindustan Aeronautics Ltd NSE -0.84 % (HAL) is currently working out the costs involved and the structure of the planned JV for the production of the fifth generation Advanced Multirole Combat Aircraft (AMCA), with an ambitious target for 2028.

HAL chairperson R Madhavan told ET that the preferential model is to give the private sector a controlling stake in the joint venture and the option to take existing manufacturing infrastructure on lease to keep capital investment at a minimal.

“We will be forming a JV between DRDO, HAL and a private party. HAL will provide the infrastructure wherever possible so that the total capital cost is reduced for the private partners. Preferably, we want to keep our share below 50% so that it becomes a private entity,” the top official said.

Costs are currently being worked out and would depend on the model planned and whether the prototype of the next generation fighters will be made by the JV or fabricated by HAL before the serial production start.

“The expectations is that the private sector will have to invest Rs 2,500-3,000 crore but the number could vary. We are suggesting that the prototype manufacturing be kept outside the JV so that the capital requirement can be reduced,” Madhavan said.

Source: Defence View

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