Hindustan Aeronautics Limited (HAL) has established a committee to negotiate a significant deal with General Electric (GE) for the production of GE-F414 jet engines in India. This initiative comes amid ongoing discussions between the Indian government and US officials, with an aim to finalize the agreement by March 2025.

Details of The Negotiation Committee

HAL's Contract Negotiation Committee (CNC) was formed to facilitate discussions regarding the GE-F414 engines, which are intended for the indigenous Light Combat Aircraft (LCA) TEJAS MK-2.

The negotiations include a substantial technology transfer agreement, with plans to transfer up to 80% of the engine's value. This is a notable increase from previous agreements and is expected to enhance India's domestic defence manufacturing capabilities significantly.

The CNC commenced discussions with GE on December 3, 2024, and aims to conclude negotiations within three months, targeting a final agreement by the end of March 2025.

A Memorandum of Understanding (MoU) was signed in June 2023 between HAL and GE, outlining cooperation for engine production in India. This agreement is part of India's broader strategy to bolster its defence manufacturing sector and reduce reliance on foreign imports.

The anticipated deal is valued at approximately $1 billion and is expected to create a robust framework for future collaborations in defence technology between India and the US.

The push for this deal aligns with India's efforts to enhance its military capabilities amid rising tensions in the region, particularly concerning threats from neighbouring countries.

HAL's formation of a dedicated panel to negotiate the GE-F414 deal marks a critical step towards advancing India's indigenous defence production capabilities while fostering deeper ties with US defence manufacturers.

ANI