In a significant development for India’s defense sector, GE Aerospace has announced the delivery of the first F404-IN20 engine to Hindustan Aeronautics Limited (HAL) for the Tejas Light Combat Aircraft (LCA) Mk1A.
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This delivery comes after a delay of nearly two years, impacting the Indian Air Force’s (IAF) operational capabilities.
The resumption of engine supplies is expected to bolster the production and deployment of the indigenous Tejas fighters.
Background of the Delay
The agreement between HAL and GE Aerospace, signed in 2021, entailed the supply of 99 F404-IN20 engines to power the Tejas Mk1A aircraft.
Deliveries were initially scheduled to commence in 2023, but unforeseen disruptions, primarily due to the COVID-19 pandemic, caused significant delays in restarting the engine’s production line.
GE Aerospace faced challenges in reactivating a dormant production line and re-engaging a complex global supply chain amidst pandemic-induced constraints.
Impact on the Indian Air Force
The delay in engine deliveries had a cascading effect on the IAF’s fleet augmentation plans.
With a sanctioned strength of 42 fighter squadrons, the IAF is currently operating with only 31, highlighting a critical shortfall.
The timely induction of Tejas Mk1A aircraft is crucial to address this gap, especially considering regional security concerns.
Air Chief Marshal AP Singh has emphasized the urgent need to strengthen squadron numbers, expressing concern over delays affecting operational readiness.
GE Aerospace’s Response and Measures Taken
Acknowledging the delays, GE Aerospace highlighted the complexities involved in restarting the F404-IN20 engine production line.
The company explained that the production line had been inactive for five years, requiring extensive efforts to re-establish manufacturing processes and supply chains.
The COVID-19 pandemic further worsened these issues, affecting delivery schedules.
Despite these hurdles, GE Aerospace has now successfully delivered the first engine and is committed to fulfilling the remaining deliveries on time.
Financial Implications and Market Response
The resumption of engine deliveries has had a positive impact on HAL’s market performance.
Following the announcement, HAL’s shares surged over 3%, reflecting investor confidence in the company’s production capabilities and the expected acceleration in Tejas Mk1A deliveries.
The ₹5,375 crore deal between HAL and GE Aerospace is the largest-ever purchase order placed by HAL, highlighting the strategic importance of this collaboration.
Future Prospects and Strategic Collaborations
Beyond the current F404-IN20 engine deliveries, GE Aerospace and HAL are exploring further collaborations to boost India’s indigenous defense manufacturing capabilities.
In June 2023, GE Aerospace signed a Memorandum of Understanding (MoU) with HAL to potentially produce GE’s F414 engines in India.
This initiative aligns with the Indian government’s ‘Make in India’ policy and aims to support the development of the Tejas Mk2 program.
Such partnerships are expected to strengthen India’s self-reliance in defense technology and reduce dependence on foreign suppliers.
Moving Forward
The delivery of the first F404-IN20 engine by GE Aerospace is a significant milestone in the Tejas LCA Mk1A program.
It addresses previous delays and sets the stage for enhanced production and deployment.
This development not only strengthens the Indian Air Force’s operational capabilities but also marks a step forward in India’s self-reliance in defense manufacturing.
The ongoing collaboration between GE Aerospace and HAL is expected to yield further advancements, contributing to the modernization of India’s defense forces.
By – Nikita
