The Ministry of Defence (MoD) has rebuffed reports that India has invoked penalties against the US jet engine manufacturer General Electric (GE) which signed a $716 million deal with HAL in 2021 for 99 F404 engine for Light Combat Aircraft (LCA) Tejas Mk1A.

In a message to journalists on the evening of October 29, the Ministry of Defence (MoD) said, "It has been noted that some media organisations have carried a story that India plans to impose penalties on GE for the delay in delivery of Tejas engines. The story is factually incorrect as no such proposal was considered. The contract is between HAL and GE."

The $716 million contract signed in 2021 between GE and HAL was for the supply of 99 F404 engines, with delivery expected to begin in 2023 but now delayed until March/April 2025.

GE F414 engine for Tejas Mk2

The false reportage was based on the delays from GE and the speculations that the government might impose a penalty. However, it is a pertinent fact that there is an inherent clause – Liquidity Damage –which is embedded in such high stake deals through government-to-government (G-to-G) routes and many cases of military procurement. According to the contract, the first tranche of the jet engines was supposed to start by 2023. In fact, the talks on engine supply did take place during the recent visit of Prime Minister Narendra Modi and Defence Minister Rajnath Singh to the US. As reported, GE has committed to start delivering the engines (F404) for LCA Tejas Mk1A by March/April 2025.

The engine blues for Tejas

The contract was signed in August 2021 between GE and HAL. According to the contract, the US engine maker was to start delivery of 99 engines for the 83 LCA Mk1A last year. The delay has certainly caused the IAF to red-flag the issues at the highest level, leading to multiple talks with the firms and officials from the MoD, India.

The first in the Tejas Mk1A series (LA 5033), which was supposed to demonstrate its worthiness and readiness for the further assembly process took its first sortie in March. However, it did fly with a 'used engine' which was tested for the LCA Tejas in the earlier stage.

Moreover, looking at the state of affairs and clumsy delays, IAF Chief Air Chief Marshal A.P. Singh also flagged the issues on the annual day session with the media.

India aims for self-reliance in jet engine technology, with projects like the AMCA and Tejas Mk2, while partnerships with GE, Rolls-Royce, and Safran are seen as pathways to develop advanced engine technology.

"It is a known fact that the Tejas aircraft has been delayed. If the promise of producing 24 aircraft per year is kept, that delay can be addressed. We need to look at private players coming in. HAL also has its limitations and looking at the numbers involved, we need the private industry to chip in to meet the production challenges," he said.

Again, HAL also has been ramping up its production line, readying for additional capacity at a newly established line in Nasik. In its existing capacity in Bangalore, the HAL can produce 16 aircraft with the added capacity of 4-5 at the Nasik base.

What caused the delay?

Firstly, reports suggest the supply chain constraint of the components in the wake of ongoing conflict where the US needs to continuously supply military equipment to its partners in the European Union. Reports also suggest the disruption took place due to the bankruptcy of a South Korean defence firm which is supposedly a key supplier of parts and components for the engine.

GE has agreed to supply its newer F414 engines for the Tejas Mk2, with potential for joint production in India, though questions around Intellectual Property (IP) rights remain unresolved

It is pertinent to note that the jet engine involves the most complex integration of critical parts which requires the highest order of precision and certification.

In fact, recently, at an open session, Larry Culp, Chief Executive Officer, GE, highlighted the supply chain issues, and pointed out "15 different suppliers across its supply chain are involved in the disruptions."

Self-reliance on jet engine

India has been striving to have its indigenous engine. It is not that India has not been able to develop jet engines. Kaveri did manage to power aircraft which flew multiple hours in its test run.

However, that fell sort of expectation in terms of overall thrust and weapon load which is what a fighter jet is supposed to do in a combat role. Despite this, Kaveri is now geared up for unmanned aerial vehicles (UAVs) of various payloads and weaponry.

French OEM Safran is already collaborating with HAL on engine projects, including a new turboshaft engine for India's upcoming helicopters, highlighting the strategic focus on indigenisation in India's defence sector

How is the establishment gripping with the possibilities especially that IAF is looking at 500 aircraft in coming decades? Two key projects are already in the pipeline—AMCA and Tejas 2.

The three giants of global engine manufacturers: Rolls-Royce, GE and Safran— each has a working mechanism with the Indian aerospace entity HAL for a variety of aircraft and helicopters.

Cooperation with GE emerged as one of the key possibilities for a tech transfer which will allow India to leapfrog in jet technology and reduce the lengthy time frame for such a complex task which is so far mastered by only a very few – the UK, the US, France and Russia and China with Russian tech.

GE announced it was ready to supply India with its newer F414 engines for the forthcoming Tejas Mk2. The agreement includes the potential joint production of the F414 engines in India.

However, the question still hangs around the very question of "IPs"—the Intellectual Property—the rights to owning the full tech for the jet engine which involves the "core" of the engine.

SHAKTI OR THE ARDIDEN 1H1 ENGINE JOINTLY DEVELOPED AND PRODUCED BY SAFRAN WITH HAL

Key players like Rolls-Royce insist on co-development with India which is about having to build it from scratch and acquire the full capability for futuristic projects.

On the other hand, French OEM Safran is already in cooperation with HAL for the Shakti/Ardiden 1H1 engine, certified in 2009, which is one of the key components in the partnership between the two countries for indigenous Light Combat Helicopter (LCH) and Light Utility Helicopter (LUH).

In addition to that Safran Helicopter Engines and HAL have already formalised a workshare agreement for the collaborative development of an Aravalli turboshaft engine for the Indian Armed Forces' 13-tonne Medium Lift class, Multi-Role Helicopter (IMRH) and 12.5-tonne Deck-Based Multi-Role Helicopter (DBMRH).

Manish Kumar Jha is a Consulting & Contributing Defence Editor for SP's Aviation, SP's Land Forces and SP's Naval Forces and a security expert. He writes on national security, military technology, strategic affairs & policies.