India considering imposing a fine on General Electric (GE)
New Delhi – Hindustan Aeronautics Limited (HAL), a Government of India enterprise, is manufacturing the ‘Tejas Mark-1A’ fighter aircraft for the Indian Air Force. The aircraft’s engines are being procured from the American company General Electric (GE), specifically the F404 model. However, due to delays in engine supply from GE, only two aircraft are expected to be produced this year, far below the anticipated 18 units per year. India has raised this issue with the United States on multiple occasions, expressing concerns over the delayed engine supply. Now, India plans to impose a penalty on GE for these delays, emphasizing the importance of maintaining production schedules for national defence projects.
In this context, U.S. National Security Adviser Jake Sullivan has assured India that engine supplies will resume as planned. GE has now committed to begin supplying the F404 engines from April next year. Sources indicate that Prime Minister Modi, Defence Minister Rajnath Singh, and National Security Advisor Ajit Doval each raised concerns about these delays with U.S. officials during their respective visits. This issue highlights the importance of timely collaboration on defence initiatives, with both nations aiming to uphold production schedules critical to India’s defence capabilities.
In February 2021, India’s Ministry of Defence placed an order valued at ₹48,000 crore for 83 Tejas Mark-1A aircraft in its first phase. However, not a single aircraft has been delivered to date, despite the contract specifying that deliveries were to commence by March 2024. The delays have impacted the Indian Air Force’s planned upgrades, raising concerns over timely fulfilment of defence needs.
Technical rather than political reason
Sources indicate that the delay in supplying the F404 engines for India’s Tejas Mark-1A aircraft stems from technical issues, not political pressure. One key factor is a shortage of essential components from South Korea, which has impacted the production of these engines by General Electric (GE) in the U.S. This disruption in the supply chain has contributed significantly to the delays, affecting Hindustan Aeronautics Limited’s (HAL) planned production timeline for the Tejas fleet.