NEW DELHI — The Aeronautical Development Agency (ADA) has re-issued the Request for Proposal (RFP) for the prototype development phase of India's Advanced Medium Combat Aircraft (AMCA) programme, introducing revised project terms and extending the bid timeline for shortlisted industry participants.
The updated tender sets the opening of bids for August 28, 2026, at 2:00 PM, after competing aerospace consortiums sought additional time to prepare their proposals. The revised documents include changes to flight testing, financial rules, maintenance costs, testing infrastructure and material handling requirements while keeping the programme focused on selecting an industry partner for prototype development.
The AMCA is India's indigenous fifth-generation stealth multirole fighter being designed by ADA under the Defence Research and Development Organisation (DRDO). The aircraft is planned as a single-seat, twin-engine platform for the Indian Air Force, featuring a low-observable design, internal weapons bays, advanced avionics, sensor fusion and multirole capability.
The Cabinet Committee on Security (CCS) had earlier approved the prototype development phase of the programme with an estimated budget of around ₹15,000–15,800 crore.
Three Private-Sector Teams Competing
The prototype development tender has been issued to three shortlisted private-sector bidders:
- Tata Advanced Systems Limited (TASL) (bidding independently)
- Larsen & Toubro–Bharat Electronics Limited consortium with Dynamatic Technologies
- Bharat Forge–BEML consortium with Data Patterns
Hindustan Aeronautics Limited (HAL) is not participating in this stage of prototype development.
Under the tender conditions, the winning bidder will be required to establish a new dedicated company within three months of contract award to execute the project. The company will operate from ADA's Core Integration and Flight Testing Centre at Puttaparthi, Andhra Pradesh, whose foundation stone was laid in May 2026.
Revised Flight Testing Plan
The re-issued tender expands the flight testing programme for the AMCA prototypes.
The selected industry partner will be required to manufacture and test five different flying prototypes. According to the revised project schedule, the complete flight test programme will include 1,800 test flights, to be completed by the 84th month of the project.
Earlier project timelines outlined in the RFP also targeted the first prototype flight approximately 30 months after contract signing, with completion of the full flight test campaign before the programme moves toward series production.
Financial Rules Updated
The revised tender replaces the use of the London Interbank Offered Rate (LIBOR) for interest calculations related to specific payments and refunds.
Instead, all such calculations will now be based on the State Bank of India's Marginal Cost of Funds Based Lending Rate (SBI MCLR).
Maintenance Cost Formula Revised
ADA has also updated the maintenance cost framework for the prototype fleet.
The estimated annual maintenance cost for the five prototypes has been fixed at 5% of the total prototype cost. Future revisions to these costs will now be linked to the Consumer Price Index (CPI) and Wholesale Price Index (WPI) instead of the previously used Consumer Price Index for Industrial Workers (CPI-IW).
Additional Testing Equipment Required
The revised tender introduces an additional testing requirement for the selected partner.
Along with the previously required Mobile Electromagnetic Interference (EMI) and Electromagnetic Compatibility (EMC) testing setup, the project now mandates the installation of a dedicated Lightning Test Rig to support aircraft testing under severe weather conditions.
Government Clarifies Material Handling Responsibility
The updated RFP also clarifies responsibility for government-supplied materials.
According to the revised conditions, government insurance coverage will apply only while the materials are in transit. After delivery, the selected industry partner will be responsible for the storage, handling and protection of these materials in accordance with prescribed safety and security requirements.
Next Steps
The technical and commercial evaluation process will begin after bids are opened on August 28, 2026.
The revised tender remains focused on selecting an industry partner to work with ADA on building and flight-testing the AMCA prototypes under the programme's defined technical and development schedule. Based on the current programme timeline, the first prototype rollout is planned for the late 2020s, followed by flight testing before the aircraft's planned induction in the 2030s.
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