India and the United States are close to finalising a defence deal worth over USD 1 billion for 113 GE-404 engines to power 97 LCA Mark 1A jets, ensuring timely delivery of the aircraft to the armed forces.
India and the United States are on the verge of finalising a significant defence deal, with an agreement worth over USD 1 billion to purchase 113 engines for 97 LCA Mark 1A Tejas fighter jets. This new order would be in addition to the 99 GE-404 engines already contracted for the initial 83 Mark 1A jets.
The development comes at a time when India-China relations are under strain following Donald Trump’s decision to impose a 50 per cent tariff on New Delhi over its trade with Russia.
Defence sources indicated that negotiations for the 113 engines are nearing completion and a deal is likely to be signed by September of this year.
The acquisition aims to ensure a continuous supply of engines for Hindustan Aeronautics Limited (HAL), which is manufacturing the indigenous Light Combat Aircraft (LCA), thereby avoiding any types of delays in engine supplies.
This steady supply is crucial for HAL to meet its production targets, with the first batch of 83 aircraft slated for delivery by 2029-30, and the subsequent 97 by 2033-34. American firm GE is expected to supply two engines per month to fulfil its commitment to the Indian program.
Meanwhile, HAL is also in negotiations with GE for a separate deal to acquire GE-414 engines with an 80 percent transfer of technology. This around USD 1.5 billion deal is expected to be signed in the coming months to provide 200 GE-414 engines needed for India’s LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA) programs.
In a separate, but equally critical development, HAL is in advanced talks with GE for a deal to acquire 200 GE-414 engines for the future LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA) programs.
