HAL takes strict action on delay in Tejas flight, fine imposed on American company GE; Know what is the whole controversy

HAL GE Engine Delay: Hindustan Aeronautics Limited (HAL) and General Electric (GE) deal is once again in the news. According to a PTI report, Hindustan Aeronautics has cited contract terms to impose penalty on US company General Electric for delay in supply of F404 engines.

HAL, which is working on the Tejas Mk1A programme, is facing production delays as they depend on GE’s F404 engines for final assembly. HAL told news agency ANI that the production line is ready, but the delivery of the aircraft depends on the availability of engines.

Why is HAL imposing fine on GE?

According to PTI, HAL has imposed a penalty under the provision of liquidated damages on GE Aviation for delay in delivery of Tejas Light Combat Aircraft Mark 1A engines. Hindustan Aeronautics Chairman DK Sunil told ANI that there is a provision in the contract which states that if there is a delay in the delivery of F404 engines for the light combat aircraft, a penalty will be imposed on GE Aviation. Under this, fine is being imposed on the company. In February 2021, the Defense Ministry signed a Rs 48,000 crore deal with HAL to procure 83 Tejas MK-1A jets for the Indian Air Force.

GE promises 20 engines

According to ANI, Chairman of HAL DK Sunil also said that the company expects to receive more engines in the second half of FY2026. Sunil said according to ANI that last time I visited GE, they had assured me that they would supply 20 engines in the second half of this calendar year, between June and December. This is a pessimistic figure; They have told me that they can do better than this.

Review by IAF likely in May

HAL had earlier targeted delivery of the planes by March 2026, after missing the previous 2025 deadline due to supply chain-related issues. Currently HAL has five aircraft ready with engines, but none of these have been handed over to the Indian Air Force yet.

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IAF will take delivery after review

Indian Air Force The LCA will take a decision on accepting delivery of the aircraft only after reviewing the MK1A program in May. The Air Force has ordered 180 aircraft under this programme.