The case for a second fighter jet maker in India isn't compelling: HAL CMD

Hindustan Aeronautics CMD D K Sunil says the aerospace major is leveraging private-sector partnerships to boost production capacity and address the IAF's concerns over depleting squadron strength

Bengaluru-headquartered Hindustan Aeronautics Limited (HAL), a Maharatna public sector undertaking under the Ministry of Defence and India’s largest defence company by revenue, order book size, and market capitalisation, has faced sustained criticism from the Indian Air Force (IAF) over delays in the LCA Tejas Mk1A programme. The original February 2024 deadline for the start of deliveries was missed, even as the IAF grapples with declining squadron strength amid a volatile neighbourhood that recently saw it carry out deep strikes into Pakistan during Operation Sindoor. HAL is also pursuing a follow-on order for the Mk1A, after the initial Rs 36,000 crore deal for 83 aircraft. Meanwhile, in a move that could end HAL’s monopoly in fighter production, private and public defence firms are preparing to compete to develop the prototype of India's first fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA). In this context, HAL Chairman and Managing Director D K Sunil  sat down with Bhaswar Kumar on July 4 to address the IAF’s concerns and explain why he believes HAL remains best suited to build the AMCA. Edited excerpts:

 

The AMCA execution model is seen as an opportunity to establish a second fighter jet manufacturer, and perhaps for ending HAL’s monopoly. Comments?

 

The logic of having two competing players in a sector like this doesn’t hold when the volumes are modest. The IAF plans to induct seven squadrons — 126 jets — of the AMCA. The Tejas Mk2 numbers stand at 120. Over the next 15 years, procurement — including 180 LCA Mk1As, 120 Mk2s, and 126 AMCAs — adds up to around 420 jets. That averages out at 28-30 aircraft a year. This is not the kind of scale where you need — or can sustain — multiple full-fledged manufacturers. Even globally, the United States has only Boeing and Lockheed Martin; the United Kingdom has BAE Systems; France has Dassault. These companies succeed because they operate at scale, and these platforms require immense investment. From an economic standpoint, the case for a second fighter jet maker in India isn’t compelling. That said, the government is keen to bring more players into the sector. But I would submit that HAL is already enabling that. We work with 6,500 small, medium, and large companies. The same outsourced production model we are using for the LCA is being extended to the light combat helicopter (LCH). Most structures and components come from different firms — we integrate and deliver. HAL is committed to growing India’s aerospace and defence ecosystem and will continue doing so.

 

As regards the competition to build the AMCA prototype, a briefing for the competing companies was scheduled last Friday, and ahead of it some private firms expressed concerns that the conditions favour HAL. Your views?

 

Some of the evaluation criteria for the prototype tender are weighted against us. For instance, if your order book exceeds a certain threshold, you get zero out of 100 under that specific criterion. Bidding solo, rather than as part of a joint venture or consortium, will also result in a loss of points. We voiced our concern in the meeting today (last Friday). 

 

The received wisdom is that the likely winner will be a consortium or joint venture that includes HAL. Comments?

 

We’ve been involved in the AMCA’s design and have partnered the Aeronautical Development Agency (ADA). Although much of the work is being done by the ADA, we are contributing structural elements like the landing gear. So yes, we are very much interested. By the time the AMCA enters series production — around 2035 — our Tejas production lines will be winding down. We’re currently investing in significant capacity. This is government-funded investment, and from our standpoint, the logical move is for HAL to begin AMCA series production in 2035 — our facilities would then be productively engaged.

 

The IAF says it needs 35-40 fighters a year to arrest squadron depletion, and that HAL’s 24-per-year Mk1A output won’t suffice. Your views?

 

We have two production lines in Bengaluru. A third was set up last year in Nashik, Maharashtra, and I expect the first aircraft from that line to roll out by end-July or early August. Together, these three lines will produce 24 jets annually. In parallel, we’ve outsourced a substantial share of Tejas production. Key private players include VEM Technologies for the centre fuselage, Alpha Tocol Engineering Services for the rear fuselage, LMW Ltd for the air intakes, Larsen & Toubro (L&T) for the wings, and a joint effort by National Aerospace Laboratories and Tata Advanced Systems Ltd for the fin and rudder. In March, Alpha Tocol delivered the first rear fuselage for the Tejas Mk1A, and we expect the first set of wings from L&T in July. As these firms ramp up, they are expected to deliver components for six additional jets initially, raising our capacity to 30 jets per year. This is a conservative estimate and could increase as private players enhance speed and efficiency. Once this output comes online, it will effectively serve as a fourth production line in the private sector — though integration and final assembly will continue to be done by HAL. That is how we are addressing the IAF’s requirements. 

 

What is the update on the Tejas Mk1A programme? 

We’ve already produced six aircraft, currently flying with reserve engines — a temporary arrangement due to delays in the delivery of the F404-IN20 engines from GE Aerospace. The first engine was delivered in April, the second is expected by end-July, and GE has committed to supplying 12 engines within this calendar year. Accordingly, 12 aircraft will be delivered by the end of this financial year.

 

Any update on the ₹67,000 crore follow-on order for 97 Tejas Mk1A?

 

We expect the final clearance from the Cabinet Committee on Security this year.

 

What’s the latest on the Tejas Mk2 project timelines and engine, considering it uses a different GE powerplant from the Mk1A? 

Prototyping for the Mk2 is underway at our hangars. We expect the aircraft to be ready for rollout between January and March 2026, and to fly by the end of the year. We have sufficient GE F414 engines for prototype development. The engine manufacturing contract with GE — for the series production aircraft — has been divided into two stages. The first, covering technical negotiations and the transfer of 80 per cent of the technology, has been completed after a thorough process. We are now in the commercial phase. Optimistically, I expect the contract to be signed in three months. We expect the Mk2 to be certified by 2029, with series production starting the same year. The likely order volume is around 120 aircraft. The idea is to complete production between 2030 and 2035.