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Home > India > India-US to conclude USD 1 bn deal by October: HAL Chairman on 113 GE-404 engine deal

India-US to conclude USD 1 bn deal by October: HAL Chairman on 113 GE-404 engine deal

Written By: Indianews syndication
Last Updated: September 25, 2025 21:55:17 IST

New Delhi [India], September 25 (ANI): India is on track to finalise a significant deal with the US aerospace firm General Electric (GE) worth around USD 1 billion for 113 F404-IN20 fighter jet engines, amid ongoing trade negotiations with America.

Speaking with ANI, Dr DK Sunil, HAL Chairman and Managing Director, said that the agreement is expected to be inked by October this year, with negotiations at an advanced stage.

Regarding the contract for the 113 follow-on GE-404 engines, the HAL chief told ANI, “We expect to sign it in October. The contract will be worth more than 1 billion. The contract negotiations are done, and the price is finalised. We are only going through the contract details, and we have to sign. Now that this main contract is signed, in October, we will sign the contract with GE for 113 engines…”

HAL has concluded negotiations for 113 engines with General Electric, awaiting contract signing. The order includes 68 single-seat fighters and 29 twin-seat trainers, with deliveries starting in 2027-28 and completing over six years.

HAL aims to deliver the first aircraft by October, with three already ready pending final trials, and plans to complete 180 aircraft by 2032-33.

“Three aircraft are ready as of now. We need to do the final trials. We expect to complete those trials in October. I think we should be able to deliver by October,” said Dr Sunil on being asked when the first of the aircraft will be delivered as MoD signs a contract with HAL.

Regarding MoD signing a contract with HAL for procurement of 97 LCA Mk1A aircraft for IAF, HAL Chairman & Managing Director Dr DK Sunil said, “… By financial year 2032-33, we will finish all the 180 aircraft. That is the target…”

The F404-IN20 engines will power India’s indigenous Light Combat Aircraft (LCA) Tejas Mk1A, with HAL having already secured a contract for 99 engines for the initial 83 Tejas jets ordered by the Indian Air Force.

HAL is negotiating an 80% technology transfer for GE’s F414 engines, aimed at powering the advanced LCA Mk2 and Advanced Medium Combat Aircraft (AMCA), aligning with India’s Atmanirbhar Bharat vision.

This deal underscores India’s push for defense indigenization and reducing dependency on foreign suppliers.

Dr. Sunil sees no tariff-related impact on GE discussions; LCA Mk2 designed around GE414 engine, strengthening India-US defense ties, with collaborations in aerospace and technology transfer.

The deal is expected to boost HAL’s manufacturing capabilities and support India’s goal of becoming a developed nation by 2047.

Hindustan Aeronautics Limited (HAL) is poised for significant growth with the Ministry of Defence (MoD) signing a ₹62,370 crore contract for 97 Light Combat Aircraft (LCA) Mk1A jets for the Indian Air Force (IAF) on Thursday.

This contract marks a significant milestone in India’s pursuit of self-reliance in defense manufacturing, embodying the government’s Atmanirbhar Bharat initiative, reflecting India’s commitment to defense indigenization under the ‘Buy (India-IDDM)’ category of Defence Acquisition Procedure 2020.

LCA Mk1A features 70% indigenous content, including advanced systems like UTTAM AESA Radar.

Significant job generation expected, with 50% material content sourced from Indian private sector, boosting indigenous supply chains.

HAL has built 10 aircraft, with 11th ready; GE committed to engine supplies. Tejas Mk1A is a multi-role fighter designed for air defense, maritime reconnaissance, and strike roles, replacing aging MiG-21 fighters.

HAL is pushing for 80% technology transfer from GE for the F414 engine, crucial for future projects like the Advanced Medium Combat Aircraft (AMCA). (ANI)

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