New Delhi, Oct 29
India’s Ministry of Defence (MoD) has triggered a penalty clause against General Electric (GE) due to delays in the supply of F404-GE-IN20 aero-engines for Tejas Mark-1A jets. Sources indicate the clause was enforced to avoid scrutiny from oversight agencies like the CBI and Central Vigilance Commission. Originally, GE was expected to deliver 16 engines annually beginning in April 2023, under a $716 million contract with Hindustan Aeronautics Limited (HAL) for a total of 99 engines. However, a supply chain issue with a South Korean parts manufacturer has led to a delay of more than 18 months.
In response, India has requested that GE consider sourcing the required parts domestically to mitigate supply disruptions. GE has committed to increasing delivery to 24 engines per year from April 2025.
Despite the current setbacks, the India-US defense partnership appears poised for expansion. In 2022, India and GE signed an MoU for joint production of the more powerful F414 engines, intended for Tejas Mark-2 jets. This collaboration could bring US-origin engines to hundreds of Indian-built jets over the coming decades, marking a significant shift from Russia’s traditional dominance in India’s fighter jet fleet.
The F414 engine is also slated for use in the Advanced Medium Combat Aircraft (AMCA), with GE supporting prototype development and testing for the AMCA Mk2 engine program. With plans to manufacture around 500 jets domestically, including 180 Tejas Mark 1A, 108 Tejas Mark 2, and 100 twin-engine deck-based fighters (TEDBF) for the Navy, this collaboration may redefine India’s aviation capabilities and bolster self-reliance in defense manufacturing.
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