India-US in talks to forge jet engine production partnership with 80% tech transfer: Report

India-US deal on jet engines to make the way for 80% tech transfer by value: Report

According to an undisclosed source who spoke to CNBC-TV18, India and the United States are set to collaborate on the production of fighter jet engines. Under the arrangement, General Electric and Hindustan Aeronautics Limited (HAL) will transfer approximately 80 percent of the jet engine technology by value.

Last week, CNBC-TV18 learnt that the highest political authorities in India and the United States have granted approval for a co-production agreement, which will be officially announced during the state visit of Prime Minister Narendra Modi.

This deal could be worth several billion dollars, according to whispers. Currently, both sides are negotiating payment mechanisms, machinery procurement, and tech transfer.

Moneycontrol could not independently verify this news development.

US engine technology has not been shared this widely with any other country, according to sources. Sources privy to the deal said that no country had ever received such a level of technology transfer from the US, the UK, or France.

The following aspects of GE jet engines will be provided to India and HAL:

> Special coating for erosion and corrosion

> Repair technology for turbine

> Compression disc and blades

> Coating and machining of single crystal turbine blades

> Machining & coating of hot end parts

> Complete tech transfer for blisk machining

> Machining of powder metallurgy

> Polymer matrix composite

> Laser drilling for combustion

> Bottle boring of shafts

The collaboration on jet engine production will begin as soon as the deal between GE and HAL is signed. It is likely that technology transfer will take place in phases, with 80 percent of the value added to the engine occurring in India within three years.