India, US Aim for March Deadline to Finalize GE-414 Fighter Jet Engine Deal
India and the US are working to finalise the GE-414 fighter jet engine deal by March, involving 99 engines and expanded technology transfer. The agreement will enhance India’s defence capabilities and support the production of indigenous fighter jets like the LCA Mark 2. The deal is critical to overcoming delays in jet engine supply and achieving self-reliance in defence manufacturing.
India and the United States are expediting discussions on the GE-414 engine deal, aiming to finalize the agreement by March. A team from Hindustan Aeronautics Limited (HAL) will soon visit the US to negotiate with General Electric (GE) on procuring 99 engines, with provisions to expand the deal for India’s fifth-generation aircraft programme.
The deal, estimated at $1 billion (2023 prices), includes an enhanced Transfer of Technology (ToT) package, which GE has expanded by 22% compared to a 2012 agreement. HAL has set up a Contract Negotiation Committee to oversee discussions and assess technical documents provided by GE.
Jet Engine Supply Challenges
India faces delays in jet engine supply for its Light Combat Aircraft (LCA) Mark 1A and Mark 2 programmes due to global supply chain disruptions. Timely signing of the GE-414 deal is essential to avoid delays in the induction of the LCA Mark 2, which is intended to replace Mirage-2000, Jaguar, and MiG-29 aircraft in the Indian Air Force.
Focus on Technological Advancement and Self-Reliance
India seeks self-reliance in jet engine manufacturing by leveraging ToT agreements and collaborating with global manufacturers. The GE deal is expected to significantly enhance India’s indigenous production capabilities and strengthen its position in the global jet engine market, which is currently dominated by the US, France, the UK, and Russia.
Market and Financial Impact
HAL shares dipped 0.85% to ₹4,151.80 amid ongoing negotiations. Market analysts are closely monitoring the deal’s progress due to its potential impact on HAL’s financial performance and India’s defence modernisation efforts.
Finalising the GE-414 deal is crucial for ensuring the timely production of indigenous fighter jets and bolstering India’s defence capabilities.
disclaimer
The details are based on available reports and are subject to updates. Refer to official announcements for accurate information on the GE-414 engine deal and related defence programmes.