The Hindustan Aeronautics-General Electric deal is part of Indian Air Force’s endeavour to replace Russian MiG-21 fighter jets with Tejas light combat aircraft.
India is close to signing a new billion-dollar deal with General Electric Co. for fighter jet engines that will power locally manufactured light combat aircraft.
Hindustan Aeronautics Ltd. is in advanced stages of negotiations with the American company to buy 113 more GE-404 engines, ANI reported on Tuesday, citing unnamed defence officials. The deal, which is likely to be finalised by September, is in addition to a previous order for 99 GE-404 engines. GE has to supply two engines per month to fulfil its commitment. Additionally, HAL is negotiating 80% transfer of technology for these powertrains.
In total, HAL needs 212 such engines to power its LCA Mark 1A fighter jets.
The HAL-GE deal is part of Indian Air Force’s endeavour to replace Russian MiG-21 fighter jets with locally made Tejas LCA Mark 1 and Mark 2 aircraft. The project is backed by the Ministry of Defence and is likely to boost the domestic supply chain for defence manufacturing. To this end, HAL has to supply to the Indian Air Force 83 LCA Mark 1A fighter jets by 2029-30 and a further 97 units by 2033-34.
For the Tejas LCA Mark 2 project, India needs 200 GE-414 engines. That defence deal, worth $1.5-billion, is likely to be signed in the next few months, the defence officials cited earlier told ANI. Separately, India is working on an engine project with France’s Safran to completely localise manufacturing of fighter jets in India.
On Tuesday, HAL shares fell 1.67% to ₹4,382.70 apiece even as the benchmark Sensex ended the day 1.04% lower at 80,786.54 points.
