Hindustan Aeronautics Limited (HAL) has imposed liquidated damages on GE Aerospace over delay in supply of F404-IN20 engines for the Tejas Mk-1A aircraft, Chairman and Managing Director D K Sunil said on Thursday.
The Indian Air Force’s LCA Mk-1 fleet (first version of Tejas), which has been grounded for about two months, will be cleared to fly next week after a software issue in the fighter jet’s braking system was fixed, he added.
A local committee of adjustment surveyed the patch.
He said the contract for 99 engines specifies liquidated damages for any delay in supplies, and this clause is triggered every time an engine is late. “This is done in line with the contract.”
The US company has so far delivered only six of the 99 engines ordered by HAL in 2021 for $716 million – the first engine was delivered in March 2025. GE Aerospace attributed the delay to supply chain bottlenecks and said production was being ramped up to meet Indian demand.
The engines are for 83 LCA Mk-1As ordered by the Department of Defense $48,000 crore in 2021. HAL was scheduled to deliver the first aircraft in March 2024, but deliveries are yet to begin, as the program has been affected by engine supply constraints and delays in key certifications.
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“General Electric has assured us that it will deliver 20 more engines by the end of the year. Twenty LCA Mk-1As are ready, including five with new engines. The IAF will review the program in May,” Sunil said. Deliveries will begin after completion of ASRAAM (Advanced Short-Range Air-to-Air Missile) trials in the required configuration and some radar software upgrades.”
GE has also indicated that it will deliver more than 20 engines per year from 2027 onwards, while HAL has the capacity to build 24 LCA Mk-1As per year. The Indian Air Force remains concerned about the pace of the programme, given the risks that delays in recruiting new fighters may pose to its combat effectiveness.
In November 2025, HAL announced that it had signed another deal with GE Aerospace to purchase 113 F404-IN20 engines to power an additional 97 LCA Mk-1As ordered by the Department of Defense last September for $62,370 crores. The engine deal is worth $1 billion.
“GE Aerospace values its long-standing partnership with HAL and India, and we continue to work closely with HAL and our other partners to ensure visibility into production schedules for the F404 engines,” a GE Aerospace spokesperson said.
An Indian Air Force pilot was killed last November after an LCA Mk-1 crashed during a test flight at the Dubai Air Show, the second crash involving the aircraft. Another Tejas crashed near Jaisalmer in March 2024 shortly after participating in a tri-service exercise; The pilot got out safely.
