GE Aerospace, HAL Finalise Technical Talks On Jet Engines; Contracts In The Pipeline

India and the US moved closer on making fighter jet engines together. GE Aerospace and Hindustan Aeronautics Limited (HAL) have agreed on key technical details.

This clears a major hurdle in the coproduction plan. It also signals progress in defence ties between the two countries.

The deal came into focus during Prime Minister Narendra Modi’s visit to Washington in June 2023. It centres on building GE’s F414 engines in India. These engines will power the Light Combat Aircraft (LCA) Mk2.

The agreement is expected to lead to a formal contract later this year and is seen as a significant boost for the Indian Air Force (IAF) as it looks to rebuild its declining fighter squadron strength and expand its fleet.

Breaking Down GE-HAL Deal

Under this deal, 99 engines will be made in India for the Tejas Mk2 fighter jet (Light Combat Aircraft - LCA). The Indian Air Force has projected a demand for 120 to 130 Tejas Mk2 planes. If the government clears it, the engine order can go beyond 99.

The same engine is also likely to power the first two squadrons of the Advanced Medium Combat Aircraft (AMCA).

GE Aerospace has also shown interest in talks with India to build 120kN thrust engines for next-generation fighters.

Separately, GE Aerospace has signed a deal with the Indian Air Force to set up a maintenance depot for F404 engines, which power the existing Tejas LCA fleet.

The final contract signing is expected in FY 2026-27. After that, Hindustan Aeronautics Limited will set up a manufacturing facility in India with GE’s support.

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Why Does This GE-HAL Deal Stands Out?

The key difference lies in how much technology India gets. This deal goes deeper. It allows co-production and gives India access to nearly 80% of the manufacturing know-how, much higher than the 58% offered in 2012.

Older deals were far simpler. The 2021 F404 agreement for the Tejas Mk1A was largely a buy-off-the-shelf arrangement, with almost no local work involved. That earlier deal focused on buying ready engines.

This deal is different. It lets India build 99 engines almost locally for the Tejas Mk2.

Sources:

The Economic Times

Moneycontrol