Negotiations to raise the price of GE F414 engines for India’s indigenous TEJAS MK-2 light combat aircraft (LCA) are apparently on the rise. The agreement, which included an 80% transfer of technology (ToT) from General Electric (GE) to Hindustan Aeronautics Limited (HAL), was first valued at about $1 billion for 99 engines. Recent conversations, however, indicate that a number of factors impacting the negotiations may cause the price to increase.
The estimated cost of the agrAlthough precise pricing has not yet been decided upon, recent sources suggest that continuing conversations could result in a higher price point.
eement was $1 billion, or roughly $10 million for each engine.
Pricing may be impacted by the complexity of producing modern jet engines and the worldwide demand for them.
One important component that provides value and might support a higher price is the substantial ToT that is part of the deal.
Enhancing India’s defense capabilities and building a more independent defense sector are the goals of the partnership, which could influence price negotiations.
The price of the GE F414 engines for the TEJAS MK-2 fighter jets is expected to rise as negotiations continue, despite earlier estimates placing the transaction at about $1 billion. 83 TEJAS MK-1A fighters have already been ordered by the IAF, and 97 more are in the works.
