GE-404 engine for LCA Tejas fighter jet.
HAL vs GE Aerospace: India’s indigenous fighter jet program has hit a critical bottleneck, as Hindustan Aeronautics Limited (HAL) moves to impose financial penalties on GE Aerospace over prolonged delays in the supply of fighter jet engines—delays that have effectively frozen the production line of the Tejas Mk-1A.
At the heart of the dispute is a $716 million contract signed in 2021 for 99 F404-IN20 turbofan engines, the powerplant designated for the upgraded Tejas Mk-1A light combat aircraft. HAL Chairman and Managing Director DK Sunil confirmed that the company has begun invoking contractual provisions for liquidated damages, penalizing GE for each missed delivery milestone.
A Program Stalled
The scale of the disruption is stark. Despite the agreement being signed five years ago, GE Aerospace has delivered only six engines so far. The first unit arrived as late as March 2025—well behind schedule—leaving HAL struggling to maintain momentum on a program central to India’s air power modernization.
The Tejas Mk-1A, an advanced iteration of India’s homegrown light combat aircraft, is being built to fulfill an order of 83 jets for the Indian Air Force (IAF). But with engines in short supply, production has slowed to a crawl.
HAL officials say that while 20 aircraft airframes are structurally complete and ready for final assembly, only five currently have engines installed. The remainder sit idle, awaiting deliveries that have failed to materialize.
Originally, the first Mk-1A aircraft was scheduled for delivery to the IAF in March 2024. More than a year later, not a single jet has been handed over.
Supply Chain Strain and Assurances
GE Aerospace has attributed the delays to lingering global supply chain disruptions, a challenge that has affected aerospace manufacturing worldwide in the post-pandemic era. The company insists it is working to accelerate production and meet its obligations.
According to HAL, GE has now committed to delivering 20 additional engines by the end of 2026. From 2027 onward, the company is expected to ramp up output to exceed 20 engines annually—a rate that could help stabilize the program if achieved.
Still, the credibility of these assurances remains under scrutiny, particularly as HAL escalates financial pressure through penalties.
Beyond Engines: Technical Hurdles Persist
The engine shortage is only one of several obstacles facing the Tejas Mk-1A program. Even as hardware availability constrains production, the aircraft must also clear a series of technical benchmarks before induction.
Among them is the integration and testing of the Advanced Short-Range Air-to-Air Missile (ASRAAM) in the Tejas configuration, along with critical upgrades to radar software systems. These steps are essential for achieving full operational capability and certification.
The IAF is expected to conduct a comprehensive program review in May, evaluating how the delays will impact its operational readiness at a time of evolving regional security challenges.
Tejas Fighter Jet
Fleet Recovery and Safety Concerns
In a parallel development, the existing Tejas Mk-1 fleet is preparing to return to service after a two-month grounding. The pause in operations followed the discovery of a software glitch in the aircraft’s braking system.
A locally convened modification committee has since approved a fix, clearing the aircraft to resume flight operations in the coming week. The return to service will provide some relief to the IAF, which has faced reduced squadron availability during the grounding.
However, safety concerns continue to cast a shadow over the program. The Tejas has experienced two major incidents in recent years. In November 2025, an IAF pilot was killed when a Tejas Mk-1 crashed during a demonstration at the Dubai Airshow. Earlier, in March 2024, another aircraft went down near Jaisalmer, though the pilot ejected safely.
Strategic Stakes and Future Commitments
Despite ongoing challenges, HAL has doubled down on its partnership with GE Aerospace. In late 2025, the two companies signed a separate $1 billion deal for 113 additional engines intended for a second batch of 97 Tejas aircraft.
The decision underscores India’s continued reliance on foreign engine technology, even as it pushes for greater self-reliance in defense manufacturing under its “Make in India” initiative.
For now, however, the immediate priority remains getting the Mk-1A program back on track. With penalties now in play and timelines slipping, the HAL-GE dispute has become a defining test of accountability in one of India’s most strategically significant defense projects.
Whether financial pressure will translate into faster deliveries—and ultimately, operational aircraft—remains to be seen.
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