HAL Increases Tejas Mk1 FOC Contract with IAF to Rs 6,542.20 Cr, Citing Production Hurdles and Delivery Delays

HAL Increases Tejas Mk1 FOC Contract with IAF to Rs 6,542.20 Cr, Citing Production Hurdles and Delivery Delays


Hindustan Aeronautics Limited (HAL), India's state-owned aerospace and defence company, has formally adjusted the value of its contract with the Indian Air Force (IAF) concerning the supply of Light Combat Aircraft (LCA) Tejas Mk1 jets in their Final Operational Clearance (FOC) configuration.

Originally valued at Rs 5,989.39 crore when signed in December 2010, the contract amount has been increased to Rs 6,542.20 crore primarily due to alterations in the delivery timeline.

In an official statement released through a regulatory filing, HAL confirmed the change: "We wish to inform that the company has signed today an amendment to the LCA Mk1 FOC Contract dated 23rd December, 2010. The value of the contract has been revised from Rs 5,989.39 crore to Rs 6,542.20 crore, on account of revision in the delivery schedule."

This contract pertains to the initial batches of the Tejas fighter jets ordered by the IAF.

This development occurs as the Tejas aircraft program assumes increasing significance, with expectations that these domestically produced jets will form a crucial part of the IAF's fighter fleet modernization plans in the coming years, replacing older aircraft like the MiG-21s.

Tejas Mk1A: India's Advanced Indigenous Fighter​

The Tejas, developed within India, is a multi-role light combat aircraft. Its main functions include engaging enemy aircraft (air combat) and providing support to ground troops (offensive air support). It also possesses secondary capabilities for reconnaissance missions and attacking ships.

An improved version, the Tejas Mk1A, incorporates significant upgrades, featuring modern technologies such as an Active Electronically Scanned Array (AESA) Radar for better target detection, the ability to carry Beyond Visual Range (BVR) missiles, a sophisticated Electronic Warfare (EW) Suite for self-protection, and Air-to-Air Refuelling (AAR) capability to extend its operational range.

The procurement of the Tejas Mk1A falls under the "Buy (Indian-Indigenously Designed, Developed, and Manufactured)" category, representing a major push for self-reliance in defence manufacturing. Currently, about 50% of the aircraft's components are sourced indigenously, with plans to raise this figure to 60% as the program progresses. Notably, 250 out of the 344 systems integrated into the aircraft are produced by Indian companies.

GE Aerospace Delivers Key Engine Component​

A significant positive development for the program was the recent delivery of the first F404-IN20 engine by the American company GE Aerospace to HAL. This engine is crucial for powering the Tejas Mk1A jets, and this delivery marks the beginning of the supply of 99 such engines ordered for the program, paving the way for accelerating aircraft production.

GE Aerospace highlighted the importance of this event, stating, "We were excited to deliver the first of 99 F404-IN20 engines to our valued customer Hindustan Aeronautics Limited (HAL) for the Tejas Light Combat Aircraft Mk1A fighter jet." They added, "It is an important milestone in our 40-year relationship with HAL and in our efforts to ensure a strong future for India's military..."

The F404-IN20 engine has been specifically configured for India's Tejas program. It is designed to provide high thrust suitable for a single-engine fighter and incorporates advanced features. GE and HAL engineers collaborated extensively to integrate the engine effectively with the Tejas airframe and its operational requirements.

Delivery Schedules Face Delays​

Despite progress on the engine front, the overall Tejas Mk1A program has encountered delays. In February 2021, the Indian Ministry of Defence signed a major deal worth approximately Rs 48,000 crore with HAL for 83 Tejas Mk1A aircraft.

The original timeline projected the commencement of deliveries by March 2024. However, citing various project-related challenges, HAL had not delivered the first Mk1A fighter jet under this contract by that timeframe. (Note: The first trainer variant of the Mk1A was delivered in late 2023, but fighter variant deliveries lagged behind the initial schedule).

Restarting the production line for the F404-IN20 engines after a five-year pause presented considerable challenges, according to GE Aerospace. The company noted that the COVID-19 pandemic introduced additional complexities to this process, but emphasized that the restart was managed successfully with a focus on safety and quality standards.

With the supply of the crucial F404 engines now initiated, there is an expectation that HAL will be able to ramp up the production rate and begin delivering the Tejas Mk1A fighters more rapidly. The IAF is eager to induct these modern, indigenous aircraft to bolster its operational capabilities.

As a leading defence public sector undertaking (PSU) in India, HAL is central to the country's efforts in designing, developing, and manufacturing military aircraft, helicopters, and related systems. Continued progress in the Tejas program is vital for both HAL's future growth and India's strategic defence goals.

The coming period will be critical for the Tejas program. Following the contract adjustment and the start of engine deliveries, the focus now shifts squarely to HAL's ability to overcome production hurdles and meet the revised delivery timelines agreed upon with the Indian Air Force. Successfully achieving this will be key to establishing the Tejas firmly as India's premier indigenous combat aircraft.
 

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