India likely to sign $1 billion deal with GE for 113 Tejas Mark 1A engines by September: Report

The negotiations are almost finalised for buying 113 more GE-404 engines from the American firm GE for the 97 LCAs.

India is close to finalising a contract worth around $1 billion with American firm General Electric (GE) for the supply of 113 more GE-404 engines, defence officials told ANI after Centre cleared Rs 62,000 crore deal to acquire 97 additional LCA Tejas Mark 1A fighter aircraft.

Hindustan Aeronautics Limited (HAL) has already signed an agreement with GE for 99 GE-404 engines to power the first batch of 83 Tejas Mark 1A fighter aircraft ordered by the Indian Air Force (IAF). The proposed purchase of 113 additional engines would ensure an uninterrupted supply for the next 97 aircraft, bringing HAL’s total requirement of 212 engines in line with production targets.

According to officials, negotiations are in the final stages, and the deal is expected to be signed by September. GE is currently delivering two engines per month under its commitment to India. HAL is working to deliver the first batch of 83 aircraft by 2029–30 and the next 97 by 2033–34.

HAL is also negotiating another contract with GE for 200 GE-414 engines, which will power the upcoming LCA Tejas Mark 2 and the Advanced Medium Combat Aircraft (AMCA). This deal, estimated at USD 1.5 billion, would include 80% transfer of technology.

The Tejas programme is a key element in phasing out the IAF’s ageing MiG-21 fleet and is fully backed by the Defence Ministry and Air Headquarters. Defence officials told ANI the initiative will not only advance indigenisation but also provide significant opportunities for small and medium enterprises in the defence sector.

India is also working on an indigenous fighter engine project in collaboration with French aerospace major Safran, as part of its push for self-reliance in defence technology.

The procurement of the 97 LCA Tejas (MK-1A) comes nearly four years after the defence ministry sealed another deal involving the indigenously-built jet. 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 single-engine MK-1A will be a replacement for the IAF's MiG-21 fighters. The IAF is looking at inducting the warplanes as the number of its fighter squadrons have gone down to 31 from the officially sanctioned strength of 42.

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.

*With Agency Inputs