India is finalising a $1 billion agreement with U.S. aerospace major General Electric (GE) for the supply of 113 F404-IN20 fighter jet engines, which will power the indigenous Light Combat Aircraft (LCA) TEJAS MK-1A.
The new GE-404 engine deal will ensure steady supply to Hindustan Aeronautics Limited (HAL), which had earlier signed a contract for 99 engines for the first 83 TEJAS jets ordered by the Indian Air Force. With this follow-on order, HAL is expected to receive a total of 212 GE-404 engines.
The deal, currently in advanced negotiation stages between GE and Hindustan Aeronautics Limited (HAL), is expected to be signed by next month. This comes in the wake of the Cabinet Committee on Security (CCS) clearing the acquisition of 97 additional TEJAS MK-1A fighters earlier in August, at a cost of ₹66,000 crore, adding to the 83 aircraft ordered previously.
To support these production requirements, HAL had earlier signed a $716 million agreement in 2021 with GE for 99 F404 engines, deliveries for which are underway after initial supply chain hurdles.
With a planned production rate of 24 aircraft per year, timely engine deliveries are critical for HAL, and the advance order of 113 additional engines aims to prevent bottlenecks and ensure smooth manufacturing continuity.
The TEJAS MK-1A, significantly upgraded over its predecessor, comes equipped with advanced radars, modern electronic warfare systems, and mid-air refuelling capabilities, making it far more potent for frontline service.
Notably, this expansion comes at a time when the Indian Air Force’s fighter squadron strength is at its lowest since 1965, highlighting the urgency behind the procurement.
Parallel discussions are also progressing for a far larger $1.5 billion deal with GE to co-produce the more powerful F414 engines in India under an 80 percent technology transfer arrangement, intended for the upcoming TEJAS MK-2 program.
The TEJAS MK-2, currently in prototype phase, is targeted to enter serial production by 2027 with greater endurance and payload capacity. Additionally, work is underway to select Indian industry partners for the Advanced Multi-Role Combat Aircraft (AMCA) program, which will mark the next leap in indigenous fighter jet design and development.
Based On ET News Report
