3 Years Post-MoU, HAL-GE F-414 Engine Deal Still Faces Prolonged Negotiation Delays, All Eyes on March 2026 Deadline

A landmark agreement for the co-production of advanced F-414 jet engines in India, a cornerstone of the nation's military modernisation, is facing significant delays, with the final deal now expected to be signed by March 2026.

This revised timeline was confirmed by DK Sunil, Chairman and Managing Director of Hindustan Aeronautics Limited (HAL), more than two years after a preliminary Memorandum of Understanding (MoU) was signed with US-based GE Aerospace in June 2023.

The prolonged negotiations have cast a shadow over critical indigenous combat aircraft programmes.

The GE F-414 engine, a powerful and modern turbofan producing 98 kilonewtons (kN) of thrust, is slated to power India’s next-generation fighter, the Tejas Light Combat Aircraft (LCA) Mk2.

It is also designated for the initial prototypes of the country's ambitious fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA).

Announced during Prime Minister Narendra Modi’s state visit to the United States in June 2023, the deal was celebrated as a major leap in India-US defence cooperation and a significant boost for the 'Atmanirbhar Bharat' (self-reliant India) initiative.

The F-414 is a combat-proven engine that powers several international frontline fighters, including the Boeing F/A-18 Super Hornet and the Saab Gripen.

A key highlight of the agreement is the unprecedented 80% Transfer of Technology (ToT) from the United States, which has historically maintained strict controls over its "crown jewel" defence technologies.

This transfer will provide HAL with the capability to manufacture and maintain critical engine components domestically, including single-crystal turbine blades, advanced coatings, and composites. This would drastically reduce India's import dependency and bolster its aerospace ecosystem.

Despite the strategic importance, the final contract, estimated to be for an initial 99 engines, has been held up. While the HAL chief has indicated that discussions on the principles of technology transfer are largely complete, negotiations on commercial aspects and pricing are ongoing.

Reports suggest that aligning expectations on the precise scope of technology transfer, costs, and navigating complex US export control regulations have contributed to the extended timeline.

The delay has direct consequences for India’s strategic aviation projects.

Once the final agreement is signed, HAL estimates it will take approximately three years for the first India-made F-414 engine to be produced at its facilities in Bengaluru.

This pushes the likely availability of the first engines to 2029 at the earliest, a timeline that directly impacts the flight testing and production schedules for both the Tejas MkII and AMCA programmes. Any further setbacks could affect India's strategic deterrence capabilities in the region.

The successful finalisation of this deal remains critical for India's long-term strategic goals.

The total requirement for the Tejas Mk2, AMCA, and the future Twin Engine Deck-Based Fighter (TEDBF) programmes is projected to be over 400 engines.

The deal is seen as a transformative opportunity to establish a robust domestic industry for jet engine manufacturing, maintenance, repair, and overhaul (MRO), potentially positioning India as a key player in the global aerospace supply chain.

 

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[Andy13]

This means huge delays for Mk2s and AMCAs as well. Dunno why they are so hung up on GE...Also why is everyone sleeping over this. PMO should intervene. Or HAL can brace for another dressing down from IAF chief in next air show.

 

[R. Singh]

Move on to ink deal with Rolls Royce to make 90 Kn to 120 KN engines with IP rights also joint TEMPEST next gen fighter jet program !

 

[Vishwanath Vijay Thomre]

Nothing will happen in India, Bureaucracy is the biggest killing machine in India. There is absolutely no clarity on the engines, we have lucrative offers from Russia where they are ready to do 100% ToT and IPR. Even we can easily consider Japan offer for XF9 engines. But some how IAF MoD is inclined to signing 10 years some defense packet with US. Just flabbergasted what makes us so inclined towards west still. No issues as always we are digging our own grave.

 

[sanket]

After GE-404's delay, GE is doing the same with GE-414. But one thing is good: with 80% ToT, these components will be manufactured and sourced from local vendors, not from bankrupt South Korean vendors who failed to supply components on time for the GE-404 deal. For GE-414, the remaining 20% of hot core critical components will be manufactured in the US, which will not have any impact like what happened in the GE-404 deal. HAL already has the GE-414 for the Tejas MK2 prototype to fly, test, validate, and certify. With this, Safran's chances of an M88-TREX engine deal come to an end. Now all eyes are on the AMCA engine foreign partner announcement. AMCA MK2 will have a 120 kN powerful engine, not a 110 kN engine.

 

[Raja Rajan]

By the time F414 production begins in India, there will a number of advanced engines available in the market or the local private sectors may come out with an equivalent or a better euro engine. India should seriously go for ready to use euro engines from Japan or Russia, while Kaveri is developed to meet India's need.

 

[abhinav srivastava]

We are becoming high-technology beggars. If the deal is not done by a year they should also look for some alternate engines. Our mistake is we neither put enough resource on our own jet engine development nor we diversified engine source for our fighter jet programs.

 

[Kira]

People are blaming GE, HAL, and both governments for the supposed delay, but it is quite par for the course considering that the deal is extremely technically complex and sensitive, all while keeping the price and ToT relatively reasonable.

 

[Avada kedavra]

I don't think this deal is going to be any different than the Russian AL-31FP deal.

After seeing the individual paperwork shares of individual parties in the EJ200, TP400-D6, and the CFM LEAP engines, I can say with full certainty that the main crown jewel of the jet engine—the engine core (high-pressure compressor section)—is the rest of the 20% that's not part of the ToT deal.

 

[Pankaj]

The US is not a reliable partner. It's time to move on. Sooner or later, we have to move on from GE, as these US companies are not trustworthy in terms of their commitment. It's better to work extensively on Kaveri engine derivatives so that they could be integrated and tested first on the Il-76 and later on the Tejas MK1A. It will be a wastage of time to hope for GE F404 engines; we should think of a better alternative available at the moment.

 

[Sandeep]

It will be very disappointing if the USA are now going to backtrack on a deal that was agreed to with a MoU. We need these engines and the technology that was going to be transferred to us which would help us understand how the engine works and what is required to develop and manufacture it.

If they are asking for more money then we should just pay for it as the education, knowledge and skills we will receive will help us to one day develop our own engine without foreign help or knowledge.