The Indian government has taken action against General Electric (GE) for significant delays in the delivery of F404-IN20 engines crucial for the Tejas Mk1A light-combat aircraft program.
Sources reveal that multiple penalties have been levied on the American engine manufacturer for failing to meet contractual obligations, pushing back the delivery schedule of the much-awaited indigenous fighter jet.
Originally slated to commence in March 2023, the engine deliveries have now been pushed to March/April 2025, according to government sources. This delay has caused significant concern within the Indian Air Force (IAF), which has been eagerly awaiting the Tejas Mk1A to bolster its fleet.
The issue was reportedly raised by both Prime Minister Narendra Modi and Defence Minister Rajnath Singh during their recent visits to the US, highlighting the seriousness of the situation.
While the exact amount of the penalties remains undisclosed due to the ongoing nature of the process, sources confirm that the contract with GE includes provisions for penalties corresponding to delays in each delivery phase. "It (penalty) has been imposed more than once," a source stated, emphasizing that all contractual obligations will be enforced.
The delay stems from challenges faced by a South Korean firm partnered with GE, which has reportedly experienced financial difficulties and failed to deliver essential components. In response, India has urged GE to provide the necessary technology transfer to enable domestic production of these components.
Despite the setback, government sources maintain that the delay is not a result of any pressure tactics from the US. They attribute the issue solely to supply chain constraints faced by GE, a problem acknowledged by the company's CEO, Larry Culp, who cited disruptions across their global supply chain.
This delay further complicates India's efforts to boost its domestic defence manufacturing capabilities, a key objective of Prime Minister Modi. The country is actively seeking to reduce its reliance on foreign suppliers, particularly in light of geopolitical tensions with neighboring China and Pakistan.
Meanwhile, Hindustan Aeronautics Limited (HAL), the manufacturer of the Tejas, has assured its readiness to deliver the aircraft. With a new production line established in Nashik, HAL has increased its production capacity to 24 aircraft per year. However, the delivery timeline remains contingent on GE fulfilling its engine commitments.
The first Tejas Mk1A aircraft (LA 5033) took its inaugural flight in March this year, equipped with older "Category B" engines. Trials for the aircraft are currently underway, and deliveries are expected to commence once these are successfully completed.
This setback comes at a time when India is actively pursuing self-reliance in defense manufacturing and modernizing its air force fleet. While Russia remains a key defense partner, India has been diversifying its sources, with the US emerging as a significant collaborator. The delay in the Tejas program underscores the challenges inherent in complex defense projects and the reliance on global supply chains.
