Hindustan Aeronautics Limited (HAL) has imposed liquidated damages on GE Aerospace for delays in supplying F404-IN20 engines for the Tejas Mk-1A, its chairman and managing director DK Sunil said on Thursday. Indian Air Force's HAL Tejas performs is performing a display flight at Al-Maktoum International Airport during the Dubai Airshow 2025. (AFP)
He added that the Indian Air Force’s LCA Mk-1 fleet (the first Tejas variant), grounded for nearly two months, will be cleared for flying next week after a software snag in the fighter jet’s brake system was fixed.
A local modification committee has cleared the correction.
The contract for 99 engines specifies liquidated damages for any supply delay, and that clause is being invoked every time an engine is delayed, he said. “It is being done in line with the contract.”
The US firm has so far delivered only six of the 99 engines ordered by HAL in 2021 for $716 million — the first engine was supplied in March 2025. GE Aerospace had attributed the delays to supply chain bottlenecks and said production was being ramped up to fulfil the Indian order.
The engines are meant for 83 LCA Mk-1As ordered by the defence ministry for ₹48,000 crore in 2021. HAL was to deliver the first aircraft in March 2024, but deliveries are yet to begin, with the programme hit by engine supply constraints and delays in key certifications.
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“GE has assured us it will deliver 20 more engines by the year-end. Twenty LCA Mk-1As are ready, including five with new engines. The IAF will review the programme in May. Deliveries will begin after we complete trials of the ASRAAM (advanced short-range air-to-air missile) in the required configuration and some radar software upgrades,” Sunil said.
GE has also indicated it will deliver more than 20 engines annually from 2027 onwards, while HAL has the capacity to build 24 LCA Mk-1As a year. The IAF remains concerned about the pace of the programme, given the risks delays in induction of new fighters could pose to its combat effectiveness.
In November 2025, HAL announced it had signed another deal with GE Aerospace for 113 F404-IN20 engines to power 97 additional LCA Mk-1As ordered last September by the defence ministry for ₹62,370 crore. The engine deal is worth $1 billion.
“GE Aerospace values its longstanding partnership with HAL and India, and we’re continuing to work closely with HAL and our other partners to ensure a clear line of sight of production schedules for the F404 engines,” a spokesperson said.
An IAF pilot was killed last November after an LCA Mk-1 crashed during a demonstration flight at the Dubai Airshow, the second crash involving the aircraft. Another Tejas jet crashed near Jaisalmer in March 2024 shortly after participating in a tri-services exercise; the pilot ejected safely.