New Delhi, Oct, 29
Facing a delay of more than 18 months in the supply of aero-engines from General Electric (GE), the Ministry of Defence has invoked a penalty clause against the US aerospace giant. Sources said the penalty clause had to be invoked as there was no other option left.
“The contract and its clauses have to be enforced lest the CBI and the Central Vigilance Commission will hound the MoD officials,” the sources said.
GE is learnt to have told the Indian side that one its South Korean suppliers that manufactures parts of the engine was facing a crisis, which had delayed the supply of aero-engines.
India has asked the US company to source the part from India to overcome this disruption of supplies, sources said, adding that metallurgically casted products could be manufactured in India too.
The US firm has promised to start supplying 24 engines each year from April 2025. In 2021, GE had signed a $716 million contract with the MoD-owned Hindustan Aeronautics Limited (HAL) to supply 99 F404-GE-IN20 engines for the Tejas Mark-1A jets. As per the contract, the company was to supply 16 engines per year beginning April 2023.
India and the US are looking at long-term partnership through GE engines. Last year, a memorandum of understanding was signed with HAL to produce GE 414 engines for Indian Air Force fighter jets. The GE 414 is 35 per cent more powerful than its predecessor F404.
“As of now, a commercial clause is being negotiated between GE and HAL,” the sources said. The contract, once signed, will be a major milestone and mark a geo-strategic shift. It would possibly mean US-origin engines could be put on more than 400 fighter jets, which are scheduled to be made in India over the next two decades or more. So far, Russia-made jets flying with Russian engines dominate the inventory of the Indian Air Force and the Indian Navy.
The India-US agreement includes the potential joint production of GE Aerospace’s F414 engines in India. The F414 engine will be used in Light Combat Aircraft (LCA) Tejas Mark-2 jets and some 108 of these jets are planned to be made by HAL.
The GE engine F414-INS6 has been selected for prototype development, testing and certification of the Indian Advanced Medium Combat Aircraft (AMCA). “In addition, GE will continue to collaborate with India on the AMCA Mk2 engine programme,” the company had said last year when the deal was announced.
In all, approximately 500 jets are planned to be made in India over the next two decades or more. This includes 180 Tejas Mark 1A, followed by 108 Tejas Mark 2 and 100 twin-engine deck-based fighters (TEDBF) for the Indian Navy.
