Ready to ease entry for pvt combat jet makers: Defence secy

The government is willing to extend targeted assistance to new entrants to create an enabling environment for a second combat aircraft manufacturer — possibly from the private sector — alongside state-run Hindustan Aeronautics Ltd (HAL), through the advanced medium combat aircraft (Amca) execution model, Defence Secretary Rajesh Kumar Singh told Business Standard.

- BHASWAR KUMAR

This was after a key meeting of the Aeronautical Development Agency (ADA), the Amca's design agency, in Bengaluru on Friday, which was attended by over two dozen interested companies.

While stating that the government acknowledged HAL's inherent advantage in securing the prototype development tender for India's first fifth-generation fighter jet due to historical factors, the defence secretary said it nonetheless believed there was space for at least two such entities in the country.

"Access to Indian Air Force (IAF) base and common test facilities, probably at a discounted rate, could be extended to private-sector players that qualify as the development-cum-production partner for the Amca prototype, either as a single entity or as part of a joint venture (JV) or consortium," the secretary said, addressing a crucial concern of large private companies interested in competing.

The private industry has welcomed the Amca execution model, under which both private and public Indian defence companies have been given equal opportunity to compete for developing the stealth fighter's prototype. However, there are concerns that a level playing field with HAL might still be some distance away. One reason cited by an industry insider is that the Bengaluru-headquartered Maharatna's assets, including its own aviation facilities for testing and development, are government-funded — meaning it bears neither asset-creation nor servicing costs.