India and US seek early closure of GE-414 fighter engine deal ahead of March deadline

HAL’s team is expected to visit the US in the coming weeks to discuss the GE-414 engine contract with General Electric (GE). Defense officials confirmed that the team will conduct detailed negotiations covering all aspects of the program and work towards a deal by March. Current negotiations include the procurement of 99 engines, with the possibility of expansion if these engines are selected for India’s fifth generation. aircraft program. “The level of technology transfer promised by GE Aerospace is very high and will definitely help improve the country’s capabilities in this field,” defense officials told ANI.

IDRW said GE is seeking an additional $50 million for the deal, which would expand the scope of technology transfer (ToT) by 22% compared to the 2012 deal. The total cost of the transaction is estimated at approximately $1 billion at 2023 price levels. HAL established a Contract Negotiation Committee (CNC) to oversee discussions and requested certain technical documents from GE to evaluate the proposed ToT.

Challenges in jet engine supply

India is facing challenges due to delays in the supply of jet engines for the Light Combat Aircraft (LCA) Mark 1A and Mark 2 programmes. GE-404 engine deliveries for the LCA Mark 1A fleet have been affected by global supply chain disruptions. Officials said delays in signing the GE-414 project could impact the introduction of the LCA Mark 2, which is designed as a 4.5-generation aircraft to replace the Indian Air Force’s Mirage 2000, Jaguar and Mig-29 fighter jets. said.

Technological progress and efforts for independence

India is working with global manufacturers to become self-reliant in jet engine manufacturing. “India has now started working on developing its own engine and may soon partner with global manufacturers in this regard,” the official told India Today TV. GE’s proposed ToT is expected to significantly enhance India’s indigenous capabilities in jet engine production.

Global jet engine market and India’s position

Currently, only a few countries can manufacture jet engines, including the United States, France, the United Kingdom, and Russia. Most fighter jets around the world rely on engines from American, Russian, or European manufacturers. India aims to reduce dependence on foreign suppliers through strategic partnerships and technology acquisition.

Financial and market impact

Despite ongoing negotiations, HAL shares traded 0.85% lower at 4,151.80 pounds on Tuesday. Stock prices have remained flat since the beginning of the year. Market analysts are closely monitoring the progress of this deal considering HAL’s financial performance and potential impact on India’s defense sector. Completion of the GE-414 engine deal is critical to India’s defense modernization plans. Successful completion by March will be key to ensuring timely production of indigenous fighter jets and strengthening national security capabilities.