HAL Out of 5th Gen Fighter Jet Race, Shares Plummet; L&T, Bharat Forge Emerge as Frontrunners

• Hindustan Aeronautics Limited (HAL) has withdrawn from the race to build 5th generation fighter jets, causing its shares to drop over 8% initially.
• Larsen & Toubro (L&T), Bharat Forge, and Tata Advanced Systems have submitted bids for the project, with L&T and Bharat Forge currently having the highest chances.
• The selection criteria include technical expertise, manufacturing capability, financial strength, and experience in development and integration, with a preference for companies without large pending orders.
• The Ministry of Defense has allocated Rs 15,000 crore for the development of five AMCA prototypes in collaboration with the Aeronautical Development Agency (ADA).
• The AMCA program aims to deliver 5th generation fighter aircraft by 2030, with initial orders for 120 aircraft and advanced variants featuring stealth, AI, and long-range targeting systems.