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SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG

The supply of 99 F-404 engines by GE Aerospace to Hindustan Aeronautics Limited (HAL) under a 2021 contract has experienced significant delays, with deliveries postponed by nearly 10 months. Despite provisions in the contract that allow for financial penalties due to delayed supply, HAL has decided not to enforce these penalties on GE Aerospace. Sources close to the program have indicated idrw.org that the strategic nature of the project, combined with the necessity for continued collaboration with GE for future engine procurement, influenced this decision.

GE Aerospace has not yet delivered any of the F-404 engines meant for the Indian Air Force’s Tejas Mk1A program. However, the company is set to begin deliveries from this month and has committed to accelerating the delivery schedule over the next few months. By 2026, production is expected to ramp up significantly to meet the growing demands of the Tejas Mk1A and the upcoming Tejas MkII program.

The F-404 engine is critical for the operational readiness of the Tejas Mk1A fighter jets, which are set to bolster India’s air defence capabilities. However, delays in the supply chain have hampered the program’s progress. GE has assured HAL that it will compensate for the delays by increasing the pace of deliveries shortly to ensure the Tejas Mk1A program recovers quickly.

According to insiders to idrw.org, HAL’s decision to waive financial penalties stems from the broader strategic partnership between India and GE Aerospace, particularly with future procurements and technology transfer agreements in mind. The Tejas Mk1A and MkII programs will require not only the F-404 engines but also GE’s more advanced F-414 engines. Local manufacturing of the F-414 engines under a transfer of technology (ToT) agreement is also part of the ongoing negotiations between HAL and GE, making a punitive stance potentially damaging to long-term cooperation.

Moreover, global supply chain issues have been a significant factor contributing to the delays. The aerospace industry has faced a scarcity of critical materials, impacting manufacturers worldwide. Other aerospace engine manufacturers have also struggled to meet production targets due to these supply chain bottlenecks.

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