Front view of GE Aerospace F404-IN-20 Jet Engine.
GE Aerospace has delivered three more F404-IN20 engines to Hindustan Aeronautics Limited (HAL) for India’s Tejas Mk1A fighter programme, taking total deliveries under the programme to 10 and providing some relief to a production line that has been affected by engine shortages.
The latest engines were shipped to HAL in August 2026. Their arrival comes at a time when the availability of powerplants has become one of the constraints on the production and delivery of Tejas Mk1A aircraft.
GE Aerospace said it remained committed to its partnership with HAL and the Indian Air Force in supporting India’s indigenous fighter aircraft programme. The latest delivery, however, does not by itself resolve the wider supply problem. HAL needs a steady flow of engines if it is to maintain aircraft production and work through accumulated delays.
For HAL, the issue is not primarily whether its manufacturing line can build the aircraft. The company has said its production line is ready, but the pace of aircraft assembly remains linked to the timely arrival of engines from GE Aerospace.
Why the engine supply matters
An aircraft cannot be completed and delivered without its engine, making engine availability a direct constraint on the final stages of fighter production.
HAL has an annual production capacity of 24 aircraft. With the Indian Air Force having ordered 180 Tejas Mk1A fighters, the company needs regular engine deliveries to use that capacity effectively.
The Indian Air Force placed its first Tejas Mk1A order in February 2021. The contract covered 83 aircraft, comprising 73 fighters and 10 trainers.
A second order for 97 aircraft followed in September 2025, with a reported value of more than ₹62,370 crore. Together, the two orders form the current requirement for 180 Tejas Mk1A aircraft.
The engines are being supplied under a 2021 agreement between GE Aerospace and HAL worth approximately $716 million. At the time of the original agreement, the deal covered 99 F404-IN20 engines for the initial Tejas Mk1A order.
Supply schedules were subsequently affected by disruptions in the global component supply chain, including problems involving a South Korean supplier.
HAL has also imposed contractual penalties or liquidated damages on GE Aerospace over delayed engine supplies, underlining the commercial consequences of the disruption.
More engines expected in 2026
The three-engine shipment is the latest step in an effort to improve the supply position.
In April, former HAL chairman DK Sunil said GE Aerospace had assured the company that it would deliver 20 engines between June and December 2026.
Sunil described the figure as a conservative estimate and said the US manufacturer could potentially deliver more.
The latest deliveries therefore need to be viewed as part of a larger expected supply schedule rather than as a standalone solution. If GE can maintain or increase the pace of deliveries during the remainder of 2026, HAL should have greater scope to increase aircraft output.
The key issue will be consistency. Three additional engines can remove an immediate bottleneck, but sustained monthly supplies will be required for the production line to operate at a higher rate.
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GE Aerospace F404-IN-20 Jet Engine.
Tejas programme under pressure
The F404 has been associated with the Tejas programme since its development phase. GE Aerospace has supplied engines for earlier versions of the aircraft and restarted production of the F404-IN20 after receiving the 99-engine order in 2021.
The Tejas Mk1A is a single-engine, multi-role fighter designed for missions including air defence, ground attack and maritime operations. It forms part of the Indian Air Force’s effort to replace its ageing MiG-21 fleet and address a wider shortage in fighter squadron numbers.
That makes delays in the programme more significant than a normal industrial production issue. Every delayed aircraft affects the pace at which the air force can introduce replacement fighters.
At the same time, the Tejas programme involves a substantial domestic manufacturing effort, with HAL responsible for aircraft production and GE Aerospace supplying the engine. Delays in one part of that chain can therefore affect the performance of the wider programme.
Market reaction reflects expectations
The latest engine deliveries also affected investor sentiment around HAL.
HAL shares rose nearly 3% on the National Stock Exchange after GE Aerospace announced the August deliveries. The movement suggested that investors viewed improved engine availability as potentially helpful for aircraft production and future deliveries.
That reaction does not, however, establish that production delays have been resolved. The company still needs regular engine supplies to convert its manufacturing capacity into completed aircraft and meet its commitments to the Indian Air Force.
For now, the delivery of three engines removes part of the immediate supply constraint. The more important test will be whether GE Aerospace can maintain the promised flow of engines through the second half of 2026.
With 10 engines now delivered for the Tejas Mk1A programme and further supplies expected, HAL has a clearer path to increasing production. But clearing the existing backlog and meeting the requirement for 180 aircraft will depend on whether engine deliveries become sufficiently regular to keep the production line moving.
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