The HAL- GE deal is in focus yet again. Hindustan Aeronautics has invoked contractual clauses to impose penalties on American firm General Electric for delays in the supply of F404 engines, as per a report by PTI.
HAL, which is working on the Tejas Mk1A programme, has faced production delays as they rely on GE’s F404 engines for final assembly. According to HAL, as quoted by ANI, while the production line is ready, aircraft deliveries remain tied to engine availability.
Why is HAL imposing penalties on GE?
HAL has imposed penalties under the provision of Liquidated Damages on GE Aviation for delay in deliveries of the engines for the Tejas Light Combat Aircraft Mark 1A, according to PTI.
The penalties are being imposed on GE Aerospace as per the contract.
“The contract includes a provision stating that if there is a delay in the delivery of F404 engines for the Light Combat Aircraft, liquidated damages will be imposed on GE Aviation. So the cost is being imposed as per the contract,” said HAL Chairman DK Sunil, HAL Chairman DK Sunil said, according to ANI
In February 2021, the defence ministry sealed a Rs 48,000 crore deal with the HAL for the procurement of 83 Tejas Mk-1A jets for the IAF.
The defence ministry in September last year sealed another deal worth Rs Rs 62,370 crore with the HAL to procure 97 Tejas MK-1A light combat aircraft for the IAF.
HAL to have 6 Tejas jets ready by April end
HAL Chairman DK Sunil added, according to ANI that the company expects to have six aircraft fitted with engines by the end of April.
“By the end of this month, we will have six aircraft with CAT-A engines,” Sunil said, according to ANI.
“We have five engines, the sixth engine is ready now. It will be picked up shortly,” Sunil added.
GE promises 20 engines
According to ANI, HAL Chairman DK Sunil also said that it is expecting more engines in 2H CY26.
The last time I visited GE, they assured me they would deliver 20 engines in the second half of this calendar year, between June and December. This is a pessimistic number; they have told me they should do better,” Sunil said, according to ANI.
IAF review likely in May
HAL had earlier targeted March 2026 for deliveries, after missing a previous 2025 deadline due to supply chain issues. At present, HAL has five aircraft ready with engines, but none has been delivered to the Indian Air Force yet.
The Indian Air Force is expected to review the LCA Mk1A programme in May before taking a call on accepting deliveries. The force has placed orders for 180 aircraft under the programme.