HAL Chief Confirms Govt's Uncompromising Mandate for 80% ToT in GE F414 Engine Deal as Negotiations Underway

HAL Chief Confirms Govt's Uncompromising Mandate for 80% ToT in GE F414 Engine Deal as Negotiations Underway


The head of Hindustan Aeronautics Limited (HAL) has confirmed that the Indian government is firmly committed to securing an 80% Transfer of Technology (ToT) in the landmark deal with GE Aerospace for the co-production of F414 jet engines in India.

This stringent requirement is a non-negotiable part of the ongoing discussions, highlighting India's determined push towards achieving self-reliance in critical military and aerospace technology.

This high-profile agreement, a key outcome of Prime Minister Narendra Modi's state visit to the United States in June 2023, is vital for India's future aerial combat capabilities.

The GE F414-INS6 engine, a custom variant for India, is set to power the nation's next-generation fighter aircraft, most notably the initial versions of the ambitious fifth-generation Advanced Medium Combat Aircraft (AMCA).

Successfully acquiring the technology to build these engines domestically is considered a critical step in strengthening India's defence manufacturing ecosystem and reducing long-term dependency on foreign suppliers for essential hardware and maintenance.

During an interview, the HAL Chief acknowledged the complexities in the negotiation process.

While GE Aerospace holds the Intellectual Property Rights (IPR) for the majority of the engine's components, a certain portion of the technology belongs to third-party international vendors.

The Chief assured that HAL is working in close partnership with GE to resolve these IPR challenges and ensure there are no gaps in the technology transfer.

This collaborative effort aims to meet the government's 80% mandate completely, ensuring India receives the "know-how" and "know-why" to manufacture the advanced engine.

Significant progress has been made in the negotiations, with six rounds of detailed discussions having already been concluded between the two parties.

To move the process forward, an Indian delegation is scheduled to travel to the United States in early October 2025.

These crucial talks will focus on finalising the finer details of the agreement, including the precise scope of technology to be transferred, timelines for establishing the production line in India, and the overall financial framework of the deal, which still requires final clearance from the US Congress.
 
The correct negotiating position by GOI on 80% TOT.

GE can take it or leave it . Other options available.
 

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