MoD Clears Up: No Penalty for GE's Delayed F404 Engine Delivery for Tejas Mk1A

In a recent update, the Ministry of Defence (MoD) dispelled circulating rumors about penalties for General Electric (GE) over the delayed supply of F404 engines for India’s Tejas Mk1A Light Combat Aircraft (LCA). The MoD clarified that despite delays, no penalties have been imposed on GE, as the contract for these engines, crucial to the Indian Air Force (IAF), is strictly between Hindustan Aeronautics Limited (HAL) and GE. This decision reflects the broader strategic partnership between India and GE, underscoring a collaborative approach to managing supply chain setbacks rather than enforcing punitive measures.

The delay has been attributed to significant supply chain issues, particularly following the bankruptcy of a major South Korean supplier that provided essential components for the engines. Originally, GE’s deliveries were expected to begin in 2023 as part of a $716 million deal signed with HAL in 2021 to supply 99 F404 engines. However, as the supply chain struggles intensified, this delivery timeline was revised to March 2025. Notably, this update was formalized during Defence Minister Rajnath Singh’s visit to Washington, where he and officials met with GE to reassess the schedule and address the hurdles in the pipeline.

Despite these setbacks, the MoD has emphasized its commitment to keeping the Tejas program on track. HAL aims to complete production of 14 Tejas Mk1A airframes with fully integrated systems within this financial year, which should help mitigate any immediate gaps in the IAF’s operational needs. The absence of penalties highlights a calculated decision by HAL, as the organization acknowledges GE’s pivotal role in both current and future plans for the Tejas aircraft. 

In particular, GE’s involvement in the F414 engines, intended for the more advanced Tejas MkII, is another factor in the penalty-free approach. The MoD and HAL view the delay as an obstacle best navigated through collaborative adjustments rather than punitive measures, keeping in mind India’s long-term plans to develop and expand its defense capabilities. Additionally, ongoing negotiations are underway to secure a Transfer of Technology (ToT) agreement, which would enable local manufacturing of the F414 engines in India, significantly boosting domestic production capabilities and strengthening the indigenous defense industry.

The Tejas Mk1A program is integral to India’s Make in India initiative, showcasing the country's strides toward self-reliance in defense production. The F404 engine, a compact yet powerful unit, has been a reliable choice for many single-engine fighter jets, including the Tejas. Known for its high thrust-to-weight ratio, the F404 delivers the agility required for modern combat operations, supporting the Tejas’s role as an air superiority fighter and tactical support aircraft for the IAF. Moreover, its successor, the F414, is expected to power the Tejas MkII variant, which is designed to have advanced avionics and enhanced thrust.

By prioritizing the relationship with GE, the MoD and HAL are fostering an essential partnership that could serve as the foundation for more extensive collaborations. As the delays are addressed, India aims to reinforce its defense infrastructure and technology base, ensuring that the Tejas series of aircraft remains at the forefront of its military aviation strategy.