Govt to impose penalties on GE Electric over delay in delivery of fighter jet engines for Tejas aircrafts

The central government will impose penalties on General Electric (GE) Co. for severe delays in the delivery of jet engines that power the country’s light-combat aircraft, according to a report by Bloomberg News. The delivery of the F404 engines for Indian Air Force’s locally-made Tejas Light Combat Aircraft Mk1 series was pushed back to March 2025, officials told Bloomberg.

The supply of the engines was supposed to start by 2023, according to state-owned Hindustan Aeronautics Ltd (HAL), which signed a $716 million deal with GE in 2021 for 99 F404 engines. The delay complicates Prime Minister Narendra Modi’s plans to manufacture fighter jets at home when the country’s relations with its neighbours China and Pakistan remain strained.

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According to Bloomberg, this also comes amid attempts by the US and India to build closer military ties. Just last year, GE Electric signed a memorandum of understanding with HAL to produce an advanced version of the fighter jet engines for India’s next-generation light-combat aircraft under Tejas.

GE Aerospace said on Tuesday that the industry “continues to experience unprecedented supply chain pressures” and is working to resolve constraints, according to an emailed response to questions. According to reports, GE has been grappling with slowed global delivery of its jet engines. 

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Larry Culp, the manufacturer's chief executive officer, said this week that 15 suppliers across its supply chain are involved in the disruptions. India’s fighter jet strength is rapidly dwindling as the country retires its ageing Soviet-era aircraft. Russia remains India’s largest supplier of military hardware, though purchases have slowed in recent years due to sanctions and increased competition from other manufacturing countries.

Amid a growing push to increase the export of indigenous defence equipment, the US, France, and Armenia have emerged as the top three customers for Indian military exports. "India is presently exporting military equipment to more than 100 nations across the world. The top three countries in the last financial year include the US, France, and Armenia, official sources said on Sunday.

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According to news agency ANI, the Defence Ministry has been pushing defence exports and manufacturing in the country to improve domestic production of these equipment to meet internal and international requirements. The country's defence production value has increased significantly since 2014-15.