A team from HAL is heading to the United States soon to talk with General Electric (GE) about the GE-414 engine agreement. Defence officials mentioned that the team will have detailed talks to cover everything about the program and hope to sign the deal by March.
They are planning to buy 99 engines now, with the chance to buy more if the engine is chosen for India’s new fifth-generation fighter jets. GE Aerospace has promised a high level of technology transfer, which will help India improve its engine-making skills.
Reports say GE has asked for an extra $50 million to increase the technology transfer by 22% compared to a previous deal from 2012. This deal is expected to cost about $1 billion at 2023 prices. HAL has set up a special team to handle the negotiations and has asked GE for specific technical documents to understand what they will receive in the technology transfer.
Challenges Faced in Jet Engine Supply
India has struggled with delays in getting jet engines for its Light Combat Aircraft (LCA) Mark 1A and Mark 2 programs. The delivery of the GE-404 engines for the LCA Mark 1A has been impacted by global supply chain issues. If the GE-414 deal is delayed, it could affect when the LCA Mark 2, which will replace older fighter jets like Mirage-2000, Jaguar, and MiG-29, can be introduced into the Indian Air Force.
Pushing for Self-Reliance in Technology
India is working to produce jet engines on its own by teaming up with global manufacturers. Sources say India is starting to develop its own engine and may partner with a global company soon. The technology transfer from GE is expected to greatly improve India’s ability to make jet engines.
Global Jet Engine Market Overview
Only a few countries like the US, France, the UK, and Russia can make jet engines. Most fighter planes worldwide rely on engines from these countries. India wants to reduce its dependence on foreign manufacturers through smart partnerships and technology sharing.
Market and Financial Outlook
While talks continue, HAL’s shares dropped by 0.85% to ₹4,151.80 on Tuesday. The stock hasn’t changed much this year. Market analysts are watching the deal closely since it could affect HAL’s financial health and boost India’s defense industry.
Finalizing the GE-414 engine deal is crucial for strengthening India’s defense. Completing it by March will help in making Indian fighter jets on time and improve national security.