New Delhi: The deal to transfer fighter jet engine technology from the United States to India is facing challenges due to rising costs. This agreement involves Hindustan Aeronautics Limited (HAL), the Indian partner selected for this project. Officials say that negotiations are ongoing and the deal intends to provide over 80% of the technology needed for GE414 INS6 engines. This includes new technology for coating the engine’s hot parts, special crystal blades, and laser drilling techniques.
However, the initial cost estimates have risen dramatically. The deal was originally valued at around $1 billion, which includes technology transfer and setting up a production line in India for 99 engines. Any increase in cost will need approval from India’s defense ministry to accommodate these changes.
Previously, similar major defense deals have encountered cost and time issues, such as the Rafale fighter jet deal and the Scorpene submarine project. Negotiations for a new fighter jet engine with France have also been delayed due to pricing disagreements.
This deal with the US is essential because the 99 engines will be made in India and will be used in the Mk2 version of the Tejas light combat aircraft. The Indian Air Force expects to need 120-130 of these fighters, possibly increasing the order for engines beyond 99. Additionally, India is developing new deck-based fighters for the Navy, which will also use similar engines.
HAL has already found land in Bengaluru for a new facility and plans to have it operational within two years after the contract is signed.
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