SOURCE: AFI
Hindustan Aeronautics Limited (HAL) Chairman and Managing Director DK Sunil has reiterated that a landmark deal with US defense giant GE Aerospace to co-produce F-414 jet engines in India is on track to be finalized by March 2026, as stated in an interview with PTI. The announcement comes nearly three years after the signing of a Memorandum of Understanding (MoU) between HAL and GE Aerospace in June 2023, highlighting prolonged negotiations that have fueled speculation and uncertainty.
Despite securing an unprecedented 80% Transfer of Technology (ToT), HAL has yet to clarify the reasons behind the delays, raising concerns about the timeline for India’s indigenous fighter jet programs, particularly the Tejas MkII.
The agreement to co-produce GE’s F-414 engines, first announced during Prime Minister Narendra Modi’s visit to Washington DC in June 2023, is a cornerstone of India’s push for self-reliance in defense manufacturing under the Atmanirbhar Bharat initiative. The F-414, a high-performance turbofan engine with 98 kN thrust, powers advanced combat aircraft like the Boeing F/A-18E/F Super Hornet and Saab Gripen E. In India, it is slated to power the Tejas Light Combat Aircraft (LCA) MkII, a 4.5-generation fighter, and initial prototypes of the fifth-generation Advanced Medium Combat Aircraft (AMCA).
The deal includes an 80% ToT, a significant achievement given the US’s historically stringent controls over military technology. This ToT covers critical technologies such as single-crystal turbine blades, advanced coatings, laser drilling, and ceramic matrix composites, enabling HAL to manufacture and maintain the engines domestically. The agreement, valued at approximately $1.5 billion for 99 engines, is expected to enhance India’s aerospace ecosystem, reduce import dependency, and position the country as a potential exporter of engine components.
The MoU signed on June 22, 2023, during Modi’s US visit, was hailed as a game-changer for India-US defense cooperation. However, nearly three years later, the deal remains unsigned, with negotiations dragging on over technical and commercial terms. HAL Chief DK Sunil confirmed to PTI that discussions on ToT principles are largely complete, with 80% technology transfer agreed upon, and the focus has shifted to commercial aspects. Yet, HAL has not addressed the specific reasons for the delays, leading to widespread speculation.
Reports suggest that challenges include aligning expectations on ToT scope, pricing, and regulatory approvals from the US government. In March 2025, a GE official told idrw.org that technical discussions were still ongoing and subject to review by both governments, contradicting earlier optimism about a March 2025 closure. The US’s cautious approach to sharing “crown jewel” jet engine technology, combined with India’s insistence on maximizing ToT, has prolonged the process. Additionally, global supply chain disruptions and US export control regulations may have contributed to the delays.
Once finalized, the deal will take approximately three years for the first F-414 engine to roll out of HAL’s Bangalore facility, pushing the timeline to 2029 or beyond. HAL has already earmarked land for a new engine manufacturing plant in Bengaluru, with environmental clearances underway, but production cannot commence until the agreement is signed. This timeline aligns with the Tejas MkII program, which is expected to begin developmental flight trials by 2029 and enter limited series production shortly thereafter.
The F-414 will also power initial AMCA prototypes, India’s ambitious fifth-generation stealth fighter. However, the AMCA Mk2 is planned to use a more powerful 110 kN indigenous engine, highlighting the interim role of the F-414. Any further delays in the GE-HAL deal could ripple across both programs, potentially affecting India’s strategic deterrence posture, especially against China’s J-20 stealth fighters.
The delays highlight systemic challenges in India’s defense procurement process, including prolonged negotiations and dependency on foreign technology. However, the 80% ToT offers a transformative opportunity to build a domestic engine industry. HAL’s collaboration with GE could position India as a regional hub for engine maintenance, repair, and overhaul (MRO), with potential export opportunities. Over 400 F-414 engines are projected to be needed for the Tejas MkII, AMCA, and Twin Engine Deck-Based Fighter (TEDBF) programs, underscoring the deal’s long-term significance.
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