The Ministry of Defence (MoD) today clarified that no penalties have been imposed on General Electric (GE) for delays in the delivery of F404 engines for the Tejas Mk1A Light Combat Aircraft (LCA).
This statement comes in response to recent media reports suggesting that GE was facing penalties due to the delayed delivery of these critical components.
The MoD emphasized that the contract for the engines is between Hindustan Aeronautics Limited (HAL) and GE, and there were no proposals under consideration to penalize GE. This clarification aligns with earlier reports from sources close to the matter who indicated that HAL, recognizing the strategic importance of its partnership with GE, chose not to enforce the penalty clauses in the contract.
While acknowledging the delays, the MoD highlighted that the issue was addressed during Defence Minister Rajnath Singh's recent visit to Washington, resulting in a revised delivery schedule from GE.
The delays, attributed to supply chain disruptions, particularly the bankruptcy of a key South Korean parts supplier, have pushed the engine delivery timeline to March 2025. This is a significant setback from the original target of 2023, as per the $716 million deal signed between HAL and GE in 2021 for 99 F404 engines.
Despite these setbacks, the MoD emphasized that India remains committed to the Tejas program. Production continues to meet Indian Air Force requirements, with 14 airframes and integrated systems expected to be completed this financial year.
The decision to forego penalties underscores the long-term strategic relationship between HAL and GE, particularly concerning future engine requirements for the Tejas program. Sources suggest that HAL is prioritizing cooperation with GE for the procurement of F414 engines, which will power the advanced Tejas MkII variant.
Furthermore, ongoing negotiations for a transfer of technology (ToT) agreement to facilitate local production of the F414 engines are a crucial factor in this decision.
