GE Faces Penalty for Delayed Engine Supply to India’s Tejas Fighter Jets

The American firm General Electric (GE) will face a penalty for a two-year delay in the supply of engines intended for the Indian Air Force’s (IAF) Tejas Mark-1A, the advanced version of India’s indigenous fighter jet, Tejas. Originally, GE committed to delivering these crucial engines by March 2023. However, the engines have yet to be provided, with GE now projecting that shipments will commence in April of the upcoming year.

Government sources familiar with the situation revealed that India has imposed the contractual penalty on GE due to this delay. They also indicated that Prime Minister Narendra Modi, Defence Minister Rajnath Singh, and National Security Advisor Ajit Doval raised concerns about the engine delivery delays with U.S. counterparts during their recent visits.

While GE cited technical challenges as the primary cause for the delay, the company specifically pointed to equipment shortages from South Korea, which has affected production timelines. The delay is reportedly unrelated to political pressures or any diplomatic issues.

The Tejas Mark-1A, an upgraded Light Combat Aircraft (LCA), is being produced by Hindustan Aeronautics Limited (HAL) and is seen as essential to bolstering the IAF’s fleet. In 2021, India’s Defence Ministry signed a significant ₹48,000 crore deal with HAL to procure 83 Tejas Mark-1A fighters, followed by a subsequent agreement between HAL and GE for 99 F404 engines.