State-owned Hindustan Aeronautics Limited (HAL) has initiated penalties against US-based aerospace giant GE Aerospace for delays in supplying F404-IN20 engines for the Tejas Light Combat Aircraft (LCA) Mk1A program. HAL’s Chairman and Managing Director confirmed the enforcement of penalty clauses in the contract with GE Aerospace due to the engine delivery timeline not being met.
HAL had ordered 99 F404-IN20 engines valued at around USD 700 million to power the Tejas Mk1A fighter jets, with engine deliveries originally slated to commence in 2024. However, only six engines have been delivered to date, leading to a delay of over two years in the Tejas Mk1A program.
The contract features liquidated damages provisions enabling HAL to impose fines for each engine delivered beyond the specified schedule. HAL stated that penalties are now being enforced on a per-engine basis for delayed deliveries. The Tejas Mk1A program is a crucial advancement in India’s indigenous light combat aircraft initiative and is anticipated to significantly boost the operational capabilities of the Indian Air Force.
In addition to the initial engine order, HAL inked an extra deal valued at approximately USD 1 billion with GE Aerospace last year for 113 more F404 engines to power the subsequent batch of Tejas Mk1A aircraft. Officials have indicated that HAL is actively collaborating with GE Aerospace to accelerate engine deliveries and mitigate further disruptions to the fighter jets’ production schedule.