New Delhi | September 26, 2025 — A fresh report indicates that a consortium of Bharat Electronics Ltd (BEL) and Larsen & Toubro (L&T) is preparing to jointly bid for workshare in the Advanced Medium Combat Aircraft (AMCA) programme, India’s indigenous stealth fighter project.
The potential contract, estimated at ₹15,000 crore, could reshape the competitive landscape by introducing credible private-sector involvement alongside defence PSU giant Hindustan Aeronautics Ltd (HAL), which has historically led fighter production.
AMCA: India’s Stealth Fighter Ambition
The AMCA is a fifth-generation stealth multirole fighter aircraft under development by India’s Aeronautical Development Agency (ADA) and DRDO. It aims to equip the Indian Air Force (IAF) and Indian Navy with low-observable, supercruise-capable fighters designed to counter advanced threats in the coming decades.
The programme is expected to unfold in phases, with prototype development, testing, and eventual production requiring strong participation from both PSUs and private sector players.
BEL–L&T Partnership
According to the report, BEL and L&T plan to pool their expertise:
- BEL: Known for its avionics, radars, electronic warfare systems, and mission-critical defence electronics.
- L&T Defence: Experienced in complex systems integration, composites, and weapon platforms, with a growing track record in naval and land systems.
By combining these capabilities, the consortium could emerge as a competitive bidder for AMCA subsystems and platform-level integration work.
Competition with HAL
HAL, which has traditionally held a monopoly in indigenous fighter aircraft production (Tejas, Jaguar upgrades, Sukhoi-30MKI license production), remains the frontrunner for AMCA assembly. However, a BEL–L&T bid adds a new competitive dimension, potentially breaking HAL’s historical dominance.
Analysts say this could align with government policy to expand private participation in strategic defence projects, ensuring broader industry involvement and reducing dependence on a single PSU.
Market & Strategic Significance
If BEL and L&T succeed in securing a slice of the AMCA workshare, it would mark a significant diversification for both firms:
- For BEL: Expansion beyond electronics into full-fledged aircraft systems work.
- For L&T: Deepening presence in aerospace alongside its naval and land defence projects.
- For India: A step closer to creating a multi-vendor defence ecosystem, with competition driving efficiency and innovation.
| Key Aspect | Detail |
|---|---|
| Programme | AMCA (Advanced Medium Combat Aircraft) |
| Estimated Workshare | ₹15,000 crore |
| BEL Expertise | Avionics, radars, electronic warfare systems |
| L&T Expertise | Systems integration, composites, weapons platforms |
| Status | Developing; formal bids yet to be finalized |
Risks & Watchpoints
The development remains in the early stages. Key risks include:
- Status: The report describes the consortium’s plans as “developing”; no formal award yet.
- Coordination: Managing workshare between PSU and private partner could be complex.
- Policy: Final allocation will depend on Ministry of Defence (MoD) and DRDO structuring.
The reported entry of a BEL–L&T consortium into the AMCA stealth-fighter project could reshape India’s defence aerospace ecosystem by adding competition to HAL’s long-standing monopoly. If realized, the move would represent a significant step toward diversification, indigenization, and private sector participation in one of India’s most ambitious defence programmes.
