India is close to signing a $1 billion deal with US firm GE for the supply of 113 more GE-404 engines for the Light Combat Aircraft Tejas. The negotiations are well on way and the deal is expected to be sealed by September, reported news agency ANI quoting un-named sources.
The US firm is expected to supply two engines per month from now to fulfil its commitment for the Indian programme.
The deal is the second since the tariff row erupted with the Donald Trump government -- a Rs 62,000 crore deal to buy 97 more LCA Mark 1A fighter aircraft was the first.
The state-owned firm Hindustan Aeronautics Limited has inked the deal for 99 GE-404 engines with GE for the initial 83 LCA Mark 1A fighter jets ordered by the Indian Air Force. The new deal is about another 113.
The deal is expected to help HAL tick its shopping list of 212 GE-404 engines in continuity, and avoid any delay on the supply side. India needs 200 GE-414 engines for its LCA Mark 2 and Advanced Medium Combat Aircraft.
HAL is expected to supply the first 83 aircraft by the end of 2029-30, then a batch of 97 LCA Mark 1As by 2033-34. The state-owned firm is also negotiating a deal with GE for its GE-414 engines with 80 per cent transfer of technology.
This is meant to help the Air Force replace its fleet of MiG-21s, which are finally being phased out by the government.
India aims to achieve self-reliance in the defence sector by going indigenous. Work is on to build an indigenous fighter aircraft engine project for which it is collaborating with the French firm Safran.
