‘Factually incorrect’: HAL dismisses reports of stalled GE414 engine deal, confirms ‘negotiations on track’

Hindustan Aeronautics Ltd (HAL) on Wednesday, June 4, has denied certain media reports claiming that its negotiations with General Electric (GE) over the local production of GE414 engines have stalled. The state-run aerospace and defence company called the report factually incorrect and misleading.

Certain reports suggested that talks between HAL and GE had faltered and that HAL was exploring engine alternatives with other manufacturers for its light combat aircraft (LCA) Mk2 programme. The defence PSU dismissed this as false.

HAL issues statement on GE deal

HAL, in a statement, made it clear that the report was factually incorrect and misleading. "An online article has inaccurately reported that negotiations between HAL and GE for the local production of GE414 engines have stalled, suggesting that HAL is now in talks with another engine manufacturer," said the HAL statement.

HAL reiterates that negotiations with GE are on track and progressing well, and that HAL is not in talks with any other company regarding engines for LCA MK2. "Any information suggesting otherwise is incorrect," it added.

According to earlier reports, HAL formed a Contract Negotiation Committee to oversee discussions with GE. Talks reportedly began on December 3, 2024, and while no final agreement has been reached, HAL has asked GE for specific technical documents to assess the proposed transfer of technology.

HAL-GE deal for fighter jet engines

In June 2023, HAL and GE Aerospace signed a Memorandum of Understanding (MOU) to produce fighter jet engines for the Indian Air Force. The agreement was signed during Prime Minister Narendra Modi's official visit to the United States, and it was a key element in strengthening defence cooperation between the two countries. 

The agreement included the potential joint production of GE Aerospace's F414 engines in India. The MoU was part of the Indian Air Force's Light Combat Aircraft Mk2 program. The GE414 engine is a key component for the Tejas Mark 2, an upgraded version of India's indigenous fighter jet. The ongoing deal with GE is expected to involve technology and pave the way for local production, furthering India's long-term goal of strategic autonomy in aerospace.

GE Aerospace has operated in India for over four decades with engagement in the industry, including engines, avionics, services, engineering, manufacturing, and local sourcing. GE's presence includes its research and technology centre, the John F Welch Technology Centre at Bengaluru, which opened in 2000 and its Multi-modal Factory at Pune, which opened in 2015. GE Aerospace is a leading provider of jet engines, components and systems for commercial and military aircraft.