The Hindustan Aeronautics (HAL) sealed a major deal with American defence major GE Aerospace to procure 113 jet engines for its Tejas light combat aircraft programme. Under the deal, the delivery of the F404-GE-IN20 engines will begin from 2027 and the supplies will have to be completed by 2032, the company said in its regulatory filing.
Deal to buy jet engines for Tejas fighter jets
The deal came despite 50% tariff imposed by Trump administration on Indian goods and amid US-India trade deal which has been facing delays.
The deal, estimated at around $1 billion (approximately Rs 8,870 crore), includes the engine supply and a support package for the LCA Mk-1A fleet.
Earlier in September, the defence ministry had sealed a Rs 62,370 crore deal with the HAL to procure 97 Tejas MK-1A light combat aircraft for the Indian Air Force.
Tejas is a single-engine multi-role fighter aircraft capable of operating in high-threat air environments. It has been designed to undertake the air defence, maritime reconnaissance and strike roles.
The HAL is also using GE F404-IN20 engines to power another lot of LCA MK1A jets.
GE missed multiple delivery deadlines earlier
In February 2021, the defence ministry sealed a Rs 48,000 crore deal with HAL for the procurement of 83 Tejas Mk-1A jets for the IAF.
The delivery of the jets are facing delays primarily due to GE Aerospace missing several deadlines for supply of its aero engines to power the jets. The IAF is looking at inducting the warplanes as the number of its fighter squadrons have gone down to 31 from officially sanctioned strength of 42.
Share price of HAL
The Share price of Hindustan Aeronautics has increased 11.07% so far this year. HAL is scheduled to release its Q2FY26 earning results on November 12.
With the inputs from PTI