HAL shares surge 3% as GE Aerospace delivers 1st engine for Tejas MK 1A

The shares of Hindustan Aeronautics (HAL) surged over 3 percent on March 26 after GE Aerospace announced that it has delivered the first of the 99 F404-IN20 engines for the Tejas Light Combat Aircraft Mk 1A fight jet. HAL shares were trading at Rs 4,152 apiece in the afternoon.

Speaking about the latest development, GE Aerospace said, "It is an important milestone in our 40-year relationship with HAL and in our efforts to ensure a strong future for India’s military by developing next-generation fighters while enhancing the country’s defence manufacturing capabilities. GE Aerospace has a strong history of military jet propulsion collaboration in India."

The US-headquartered GE Aerospace said its F404-IN20 engine was selected for the single-engine Tejas in 2004, after collaborating with the Aeronautical Development Agency in the 1980s. "This was an important breakthrough for both India and GE Aerospace," the company added.

The supply of the engines was supposed to start by 2023, according to the Rs 5,375 crore-deal signed between the two companies in 2021. "This is the largest ever deal and the purchase order placed by HAL for LCA," the then HAL CMD R Madhavan had said. "The F404 family of engines has proven itself in operations all over the world and we have committed to deliver all 99 engines and support services by 2029," said Chris Cyr, Vice President, Business Development & Sales, GE Aviation.