India-US to Finalise $1 Billion GE-404 Engine Deal by October: HAL Chairman

India is preparing to seal a major defence contract with US aerospace giant General Electric (GE) for the supply of fighter jet engines that will power its indigenous Light Combat Aircraft (LCA) Tejas Mk1A fleet. 

The development comes as Hindustan Aeronautics Limited (HAL) accelerates production timelines and strengthens manufacturing capacity under the government’s Atmanirbhar Bharat initiative.

Contract with GE Nearing Signature

HAL Chairman and Managing Director Dr DK Sunil told ANI, the contract with GE for 113 F404-IN20 engines is expected to be concluded by October. “We expect to sign it in October. The contract will be worth more than 1 billion. The contract negotiations are done, and the price is finalised. We are only going through the contract details, and we have to sign. Now that this main contract is signed, in October, we will sign the contract with GE for 113 engines...”. 

Deliveries are scheduled to commence in 2027–28 and will continue for six years, covering 68 single-seat fighters and 29 twin-seat trainers.

HAL’s Production Plans and Boost to Indigenous Capabilities 

The company has pledged to deliver the entire order of 180 LCA Mk1A aircraft by FY 2032–33, including the 97 jets contracted by the Ministry of Defence (MoD) in a ₹62,370 crore deal signed on Thursday.

The Tejas Mk1A fleet is designed as a multi-role fighter capable of air defence, maritime reconnaissance, and strike operations, replacing the ageing MiG-21 series. The aircraft incorporates 70% indigenous content, including the UTTAM AESA Radar. 

HAL has already secured 99 GE-404 engines for an earlier order of 83 Tejas jets, while pursuing an 80% technology transfer agreement for GE’s more advanced F414 engines. These engines will power future projects such as the LCA Mk2 and Advanced Medium Combat Aircraft (AMCA).

Read More: MoD Signs ₹62,370 Crore Contract with HAL for 97 LCA Mk1A Aircraft!

Hindustan Aeronautics Share Price Performance 

As of September 26, 2025, at 1:35 PM, Hindustan Aeronautics share price is trading at ₹4,749.40 per share, reflecting a decline of 0.54% from the previous closing price.

Conclusion

The forthcoming GE contract marks a milestone in India’s journey towards defence self-reliance, strengthening both industrial capability and strategic ties with the United States. With HAL preparing deliveries and pursuing greater technology access, the Tejas programme is set to transform India’s air power while bolstering indigenous manufacturing for decades to come.

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