India is on the verge of finalizing a significant deal with the United States for fighter jet engine technology, specifically involving the General Electric (GE) F414 engines. This deal is expected to be valued at approximately $1 billion and will include an 80% technology transfer to India, which is a substantial aspect of the agreement. This would be followed by detailed discussions on technology transfer.

People aware of the developments said the manufacturing licence agreement for producing GE414-INS6 engines in India under a technology transfer pact is in the final stages of getting approved by the Indian government and that the bid submitted by GE is currently being examined.

Hindustan Aeronautics Ltd (HAL) has made good progress in its plans to establish a new engine factory in Bangalore. The company has already identified land for this purpose.

Key Details of The Deal

Technology Transfer: The deal will facilitate the transfer of advanced technologies, including coatings for the hot end of the engine, crystal blades, and laser drilling technology. This technology is crucial for enhancing the performance and efficiency of the engines.

Manufacturing In India: The agreement includes plans for establishing a manufacturing unit in India in collaboration with Hindustan Aeronautics Limited (HAL). This move aligns with India's "Make in India" initiative, aiming to boost domestic defence production. The Indian Air Force (IAF) has projected a demand for 120-130 TEJAS MK-2 fighters. If this demand is confirmed, it is likely that the order size for engines will exceed the initial 99 engines planned. This expansion reflects the IAF's commitment to modernizing its fleet and replacing older aircraft models, such as the MiG-29 and Mirage-2000.

Current Status: GE has submitted its technical and price bids, which are currently under review by the Indian government. The deal is anticipated to be signed within the next six months. The first flight of the TEJAS MK-2 is scheduled for December 2024, with production expected to commence by 2027-28. This timeline indicates a robust development phase, aiming to meet the IAF's operational requirements efficiently.

Implications For Indian Defence

The successful implementation of this deal will not only enhance India's indigenous defence capabilities but also significantly increase the local content in the production of fighter jets. The engines produced under this agreement will power the MK-2 version of the TEJAS Light Combat Aircraft (LCA) and the Advanced Medium Combat Aircraft (AMCA). This initiative is expected to raise the indigenous content of these aircraft to around 75%, compared to lower percentages in previous models.

In summary, this fighter jet engine deal represents a pivotal step in strengthening India-US defence ties and advancing India's self-reliance in military technology.

Agencies