General Electric may deliver engines for LCA by March or April; India invokes penalty clause

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CategoryDefence

Last Updated04/11/2024

After several delays, the F-404 jet engines, meant to power the indigenous Light Combat Aircraft (LCA)-Mk1A, are expected to be delivered by the U.S. engine manufacturer, General Electric (GE).

General Electric (GE) is expected to deliver the delayed F-404 engines for the Light Combat Aircraft (LCA)-Mk1A by March or April 2025, as per recent updates.
A $716 million deal was signed in August 2021 between GE and Hindustan Aeronautics Limited (HAL) for 99 F-404 engines to power the LCA-Mk1A, which followed a ₹48,000-crore contract in February 2021 for 83 LCA-Mk1A aircraft.
Initial plans required HAL to deliver three jets to the Indian Air Force (IAF) in February 2024, with subsequent annual production of 16 jets over five years.

The delay, attributed to logistical and supply chain issues, is not politically motivated, according to sources close to the matter.
GE’s supply chain issues have led to a two-year delay in deliveries, and the penalty clause in the contract has been invoked due to these delays.

To mitigate the delay, HAL will use two available engines from GE to produce two jets for the IAF while awaiting the full delivery.
HAL is also planning to use Category-2 or used engines temporarily to maintain production schedules until new engines are supplied, ensuring minimal disruption in delivery timelines.

Discussions on the delays have taken place between high-level officials, including National Security Advisers and the Union Defence Minister of India.
GE Aerospace has acknowledged ongoing industry-wide supply chain pressures and is collaborating with HAL to expedite deliveries.
Beyond the current order for 83 aircraft, an additional 97 LCA-Mk1A jets have been approved, bringing the total to 180 Mk1A units and 220 of the MK1 variant, with an estimated project cost of ₹1.15 lakh crore