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TrueNorth Capital

25th Sep · SEBI-Registered Analyst

LT
and
BEL
Consortium to Advance India’s 5th-Gen Fighter Program ✈️

LT
and Bharat Electronics (
BEL
) have formed a consortium to submit an Expression of Interest (EoI) for the Advanced Medium Combat Aircraft (AMCA) program. This partnership aims to leverage L&T's expertise in strategic aerospace platforms and BEL's capabilities in defense electronics to indigenously develop India's 5th-generation fighter aircraft. AMCA Program Details: The AMCA is India's ambitious project to develop a stealth, twin-engine, multi-role fighter jet. The program, approved by the Cabinet Committee on Security with an initial development cost of around ₹15,000 crore, is overseen by DRDO's Aeronautical Development Agency (ADA). The plan involves developing five prototypes, with induction into the Indian Air Force targeted for 2036. Commitment to Self-Reliance: The collaboration underscores a major push toward "Atmanirbharta" (self-reliance) in defense manufacturing. Both companies have a history of contributing to the indigenous Light Combat Aircraft (LCA) program. L&T's Chairman & MD, SN Subrahmanyan, called the partnership a "significant leap" in national security and advancing self-reliance. Government's Vision for Defense: The consortium's move aligns with the Ministry of Defence's declaration of 2025 as the "Year of Reforms," focusing on modernizing the armed forces and building a resilient supply chain amid global geopolitical instability. The government has set ambitious domestic defense production targets of ₹3 lakh crore by FY29 and has earmarked over ₹1.12 lakh crore for domestic industry capital acquisition. This framework encourages private industry participation in developing critical technologies like the AMCA.

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