HAL and GE F404 Engine Deal: Assurances, Delays, and Penalties

Hindustan Aeronautics Limited (HAL) Chairman DK Sunil announced that General Electric has assured the delivery of 20 F404 engines for the Tejas Mark 1A project in the latter half of 2026. Despite delays, HAL is set to receive a sixth engine soon, with contractual penalties imposed on GE for late supplies.

In a recent statement, Hindustan Aeronautics Limited (HAL) Chairman DK Sunil disclosed that the American company General Electric has promised to deliver 20 F404 engines in the second half of 2026. This announcement comes as HAL anticipates receiving a sixth engine for the LCA Tejas Mark 1A by the end of this month.

The delays have impacted the Tejas Mk1A programme's progress, as HAL relies on GE engines for the final assembly of the aircraft. Sunil pointed out that the initial assurance from GE was modest, and there is an expectation of improved delivery rates.

To address these delays, HAL is enforcing contractual penalties on GE, citing clauses that impose financial repercussions for late deliveries. HAL's production line is primed, awaiting engine availability to complete the assembly of the ordered aircraft.

The Indian Air Force plans to conduct a review of the LCA Mk1A programme in May, with an order of 180 aircraft pending delivery. Meanwhile, HAL has five aircraft completed but has not yet handed them over to the Indian Air Force.