Government imposes penalty on GE for delay in supplying Tejas engines: Report

The US engine manufacturer, General Electric (GE), has faced penalties from the government due to repeated delays in supplying engines for the Light Combat Aircraft (LCA)-Mk1A Tejas, according to various media reports. Tejas aircraft, under development by Hindustan Aeronautics Limited (HAL), is crucial for Indian Air Force's modernisation plans. The project has hit roadblocks owing to the delay in the supply of engines from GE.

Originally scheduled to be received in March 2024, the engine delay now pushes back IAF's Tejas schedule. PM Narendra Modi and Defence Minister Rajnath Singh flagged the delays when they met GE officials recently during their US visit. According to The Print sources, GE said it would begin supplying them by March or April 2025.

The terms don't provide details of penalties but it is indicated that the agreement allows for the imposition of penalties on account of delays in delivery on each delivery. The dispute arises post the August 2021 contract between GE and HAL under which the US engine maker was required to commence delivery of 99 engines last year to the 83 Tejas units.

HAL undertook test flights for Tejas Mk1A prototypes by using reserve "Category B" engines made from previous GE contracts that had already been completed. With the help of production also scaled up, HAL is building a new production line at Nashik to run in addition to its older one in Bengaluru, where both now have 24 Tejas aircraft they can make every year-from just 16 a year previously.