India Penalizes General Electric for Delays in F404 Engine Deliveries for Tejas Mk1A, New Timeline Set for April 2025

The Indian government has imposed multiple penalties on General Electric (GE) due to delays in the delivery of the F404-IN20 engines, a crucial component for the Tejas Mk1A light combat aircraft. The Tejas Mk1A program, led by Hindustan Aeronautics Limited (HAL), is designed to strengthen India’s air defense capabilities and reduce reliance on imported fighter jets. However, setbacks in GE’s engine delivery timeline have disrupted the production and deployment of these aircraft, leading to significant concerns within the Indian Air Force (IAF) and prompting actions by the Indian government.

Originally, GE was expected to begin engine deliveries by March 2023. However, supply chain issues and financial challenges faced by a South Korean supplier of critical engine components have pushed this timeline back to March or April 2025. This delay has left the IAF, which has been eagerly awaiting the Tejas Mk1A fleet to modernize its resources, in a challenging position.

The delays have reached the highest levels of the Indian government, with both Prime Minister Narendra Modi and Defence Minister Rajnath Singh reportedly addressing the issue in discussions with the U.S. leadership during recent visits. In response, GE has acknowledged these disruptions, attributing them to challenges within its global supply chain rather than any intentional delay. CEO Larry Culp publicly recognized the issues but assured that steps are being taken to rectify the situation.

The F404-IN20 engines, specially developed for the Tejas Mk1A, offer advanced capabilities and are essential for the aircraft’s operational performance. These engines are built to enhance speed, maneuverability, and efficiency for the Tejas Mk1A, which already includes upgraded avionics, radar systems, and electronic warfare capabilities. While the exact penalties levied on GE remain undisclosed due to ongoing contractual negotiations, insiders confirm that the contract stipulates fines for each phase of delay. The imposition of these penalties underscores India’s commitment to holding GE accountable for timely deliveries, especially given the strategic importance of the Tejas program.

Despite GE’s delays, HAL has assured that its production facilities are ready. The company recently established a new assembly line in Nashik with the capacity to produce up to 24 aircraft per year. However, actual production and deployment hinge on GE’s engine delivery. HAL recently conducted the maiden flight of the first Tejas Mk1A aircraft in March 2024, albeit using older “Category B” engines. These older engines are a temporary solution until the arrival of the F404-IN20 units, essential for the full operational capability of the Mk1A.

The delay poses additional challenges for India’s defense strategy, as the country pushes to reduce its dependency on foreign suppliers for critical defense assets. With China and Pakistan as close and active adversaries, India is working to build its domestic manufacturing capabilities to avoid potential supply-chain risks in critical situations. This move aligns with Prime Minister Modi’s “Atmanirbhar Bharat” (Self-Reliant India) initiative, emphasizing domestic production in key areas, including defense. 

India’s defense partnerships are also diversifying. Historically reliant on Russia, India has increasingly turned to Western nations, including the U.S., for advanced defense technology. The delays from GE, however, underscore the complexities of managing such partnerships in a globalized defense industry, where delays or disruptions in one part of the supply chain can impact entire projects.

Looking forward, the IAF is hopeful that GE will meet the revised timeline and that India can soon begin to realize the full potential of the Tejas Mk1A program. With the new April 2025 target, both HAL and the IAF await the arrival of the F404 engines to proceed with final testing and deployment, marking a critical step in India’s pursuit of defense modernization and self-reliance.