Hindustan Aeronautics Limited (HAL) has imposed contractual penalties on GE Aerospace for delayed deliveries of F404-IN20 engines, which are crucial for the Tejas Mk-1A fighter jets. The contract for 99 engines was signed in August 2021, but only six have been delivered as of now, leading to significant production delays. The original schedule anticipated engine deliveries starting in March 2023, with the first aircraft intended for the Indian Air Force (IAF) to be delivered by March 2024. However, this timeline has now shifted, with the first engine expected in March 2025. The penalties imposed are liquidated damages capped at 10% of the contract value, which is approximately $71.6 million USD for the initial agreement. GE Aerospace has cited global supply chain disruptions and component shortages as reasons for the delays. In response to the ongoing issues, HAL is actively invoking penalty clauses for each delayed engine. Looking forward, GE Aerospace has announced plans to establish a maintenance facility for the F404-IN20 engines in India, which is expected to enhance the indigenous defense sustainment efforts and reduce reliance on overseas repair centers.