India Nears $1 Billion Jet Engine Deal With US
Hindustan Aeronautics Limited (HAL) has already inked a deal for 99 GE-404 engines for the initial 83 LCA Mark 1A fighter jets ordered by the Indian Air Force
New Delhi: Soon after the Centre cleared a ₹62,000 crore deal to buy 97 more LCA Mark 1A fighter aircraft, India is close to signing a deal worth around USD 1 billion with American firm GE for supplying 113 additional GE-404 engines for the indigenous combat jets.
Hindustan Aeronautics Limited (HAL) has already inked a deal for 99 GE-404 engines for the initial 83 LCA Mark 1A fighter jets ordered by the Indian Air Force. These 113 engines would be in addition to that, bringing HAL closer to its total requirement of 212 engines.
Negotiations are nearly finalised, and the deal is expected to be signed by September, defence officials said. GE is likely to supply two engines per month to meet commitments. HAL plans to deliver the first 83 aircraft by 2029-30 and the next 97 by 2033-34.
In parallel, HAL is also negotiating with GE for a separate deal to acquire 200 GE-414 engines with 80% transfer of technology, which will power the LCA Mark 2 and the Advanced Medium Combat Aircraft (AMCA). The deal, worth around USD 1.5 billion, is expected to be signed in the coming months.
The indigenous fighter jet programme is aimed at replacing the ageing MiG-21 fleet and is fully backed by the Defence Ministry and the Indian Air Force. Officials said the project will boost indigenisation, support small and medium defence enterprises, and advance India’s goal of achieving self-reliance in defence production.
India is also collaborating with French firm Safran to develop its own fighter jet engines.