F-414 Engine Production Costs in India Estimated Around $10 Million Per Unit Amid ToT Price Hike

India's ambitious Tejas Mk2 fighter jet program faces a potential cost increase as the price of the GE-414 engines, crucial for the aircraft's performance, is reportedly rising. This price adjustment stems from ongoing negotiations for the technology transfer (ToT) involved in manufacturing these engines domestically.

Despite the potential increase in ToT costs, sources suggest that the unit cost for each GE-414 engine produced in India is expected to be around $10 million. This estimate aligns with the baseline cost observed in the Korean KF-21 Boramae program, which utilizes similar engines.

The deal for 99 GE-414 engines is expected to be finalized by the end of March 2025, with local production commencing in 2028. While the exact unit cost remains under negotiation, projections indicate it will likely be slightly above the $10 million mark per engine. This reflects the advanced technology involved and the economies of scale anticipated from domestic production.

This cost escalation is not unique to India's defence acquisitions. Global defence deals are facing price adjustments due to various factors, including inflation, supply chain disruptions, and the evolving nature of technology transfer agreements.

However, for India, the increased cost is balanced by the strategic advantage of establishing indigenous manufacturing capabilities. This reduces long-term reliance on foreign suppliers and potentially lowers costs over time as production scales up.

The agreement with General Electric (GE) for the F-414 engines is vital for the Tejas Mk2 project, which aims to enhance the Indian Air Force's capabilities with advanced, domestically produced aircraft.

The GE-414 engine, renowned for its high performance and reliability, is expected to significantly boost the Tejas Mk2's capabilities, making it a formidable asset in modern aerial combat.

 

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[Mahesh rathi]

Would a very small company in India set up a thousand crore plant, make all the parts of a vehicle, and then start negotiating price and delivery aspects with the foreign engine supplier? The company doing so would be called mad. That's what our defence ministry is. They will begin negotiations with GE for engines in March. Mighty skillful of them to have showcased an entire aircraft for export to the world and not have an adequate number of engines in stock. Great for them to have placed an order for 80k crores with HAL and asked GE to hold up supplies so that we are forced to import. And unlike penalty clauses, which the defence ministry imposes for failing to supply even stationery on time, no such penalty clause exists for our American friends. In fact, we gave them 32k crores last month as a mark of gratitude for doing this to us, with no penalty clause.

 

[Anubhav Sharma]

For China, it doesn't matter if their products are substandard. If their products can match even 60-70% of the original equipment, then it's good for them, as they can produce the item in such numbers that it can overpower other countries. The same happened in World War 2, where American tanks were substandard to German tanks, but Americans produced them in such great numbers that the Germans were overpowered. Now that production advantage lies with China, as their industrial output can easily outmatch the US, India, and Russia together.

 

[beencensured]

Let me explain the denial of current tech by way of an example. Russia sold s 400 to China because s 500 was already in the pipeline. While they have already sent s 500 feelers to India, they won't do the same to china unless s 600 or whatever they choose to call it is already under progress significantly. Because they know how china infringed on IPR of su-27 to produce their clones.

China and Russia have had border disputes even fights. Russia gives us arms there is less risk. India is too developing and capable of making and utilizing technology. For example, India used green pine radar to make longer range swordfish, though that is ethical by improving it. Same with Al31 engines eventually it may become 100% by fixing defects increasing reliability, and so with Brahmos % indigenous increasing putting better seekers and cheaper parts. . .

 

[Sandeep]

Not the right approach. Infringing on IPR makes you untrustworthy in the eyes of the supplier who will hesitate to part with current tech products in the future preferring to sell you outdated products only or those which are not very advanced. Russia does that to China now. So unless you can reverse engineer and produce a superior product so that you don't need the supplier again in the future, it is best to play by the rules.

Yes that’s exactly what I was saying as we shouldn’t follow the same path. Now the west would never sell China any advance technology willingly which is why they have to rely on Russia or hacking jet manufacturers or other scientific research centres just to gain an advantage over others like us who stick to agreements. A classic example is that Russia would never lease a nuclear submarine to China but will do it for India because of that trust.

 

[Sandeep]

Before the flying test bed, you need to first develop the right materials. It is not something that can be bought from a local hardware store. The materials development requires years of research. I don’t think we have deep fighter jet related Materials Science expertise yet despite having an excellent space program

A lot of progress has been made over the last decade but we still need to research advanced metallurgy, redesign the main core and develop an afterburner if we want to one day replace the F404 engines.

So far we will use it for the UCAV Ghatak which would be ideal. We can also use it for marine engines as they are currently running tests on that.

 

[Sandeep]

There are other players too. Besides, the Kaveri, with lesser power, has given insight in how to develop such engine. But the problem is the lack of will. Just when Kaveri was on a break through, someone decided to kill the funds and stall it. To create dependence on foreigners.
There is no shortage of desh drohis in Bhaarat.

They are developing it for the UCAV Ghatak drone as it produces enough thrust. We are also testing it for marine engines so progress is being made for those two projects. For jet engines it will need to be redesigned completely.