The Indian Ministry of Defence has recently clarified its stance regarding penalties imposed on General Electric (GE) due to delays in the delivery of fighter jet engines. Despite reports indicating that penalties were being enforced, the Ministry stated that "no proposal under consideration" exists for such penalties against GE at this time.

The context of this situation revolves around significant delays in the delivery of F404-IN20 engines, which are critical for the indigenous TEJAS MK-1A fighter aircraft. Originally, GE was expected to start delivering these engines in March 2023 as part of a $716 million contract signed in 2021 for 99 engines. However, the delivery timeline has now been pushed back to March or April 2025, leading to concerns about India's combat readiness amid rising tensions with neighboring countries.

Sources within the Ministry indicated that all contractual obligations would be met and that any necessary clauses related to delays would be invoked; however, they did not confirm specific penalties being currently imposed. Instead, they mentioned that penalties could be applied based on the terms of the contract, which allows for penalties for each delay in the delivery schedule.

The delays have been attributed to supply chain issues faced by GE, particularly involving a South Korean supplier that has struggled financially. In response, the Indian government has suggested that GE transfer technology to enable local production of the delayed components.

While there have been discussions and indications of penalties due to GE's delays, the Defence Ministry's latest statement suggests that no formal action has been finalized at this point, and negotiations continue regarding the terms of delivery and potential penalties.