HAL Imposes Penalties on GE Aerospace for Delayed F404 Engine Deliveries
HAL imposes penalties on GE for F404 delays
The Economic TimesImage: The Economic Times
Hindustan Aeronautics Ltd (HAL) has imposed penalties on GE Aerospace due to delays in the delivery of F404 engines for the Light Combat Aircraft (LCA) programme. HAL ordered 99 engines valued at $700 million, but only six have been delivered so far, prompting penalties for each delayed engine.
- 01HAL has imposed penalties on GE Aerospace for delays in F404 engine deliveries.
- 02Only six out of 99 ordered engines have been delivered, causing significant delays.
- 03The order for the F404 engines is valued at $700 million.
- 04An additional order for 113 F404 engines was placed last year.
- 05HAL is also negotiating for technology transfer of more advanced F414 engines.
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Hindustan Aeronautics Ltd (HAL) has imposed penalties on GE Aerospace due to delays in the supply of F404 engines for the Light Combat Aircraft (LCA) programme. The Indian aerospace company had ordered 99 engines, with an expected delivery start in 2024. However, supply chain issues have led to only six engines being delivered so far, resulting in liquidated damages for each delayed engine. The total order is valued at $700 million. Additionally, HAL placed a second order for 113 F404 engines last year. GE Aerospace has indicated that it will deliver 20 more engines by the end of the year, having identified alternative suppliers to resolve its supply chain constraints. HAL is also in discussions with GE for the transfer of technology concerning the more advanced F414 engines, which will power the next version of the Tejas fighter jet, the LCA Mk2. This new version is currently in prototype production and is expected to be ready for serial production by 2027.
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The penalties and delays could affect the timeline of India's LCA programme, impacting national defense capabilities.
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