HAL Secures Jet Engine Deal with 80% Technology Transfer, First Engine Expected in Three Years

High Level of Technology Transfer in F414­INS6 Jet Engine Deal Reflects India's Trust and Shared Strategic Priorities with the U.S.

Image Courtesy: The Hindu

General Electric (GE) and Hindustan Aeronautics Limited (HAL) are close to finalizing a jet engine deal with 80% technology transfer. The agreement aims to manufacture the F414 engines for India's Light Combat Aircraft (LCA)-MK2, with the first engine expected to roll out three years after the contract is signed. This transfer of critical technologies signifies the high level of trust between India and the U.S. and marks a ground-breaking initiative for U.S. jet engine technology transfer.

Image Courtesy: The Hindu

Critical technologies

The jet engine deal between GE and HAL will involve the transfer of key technologies, including coatings, casting, machining, and forging processes. The deal is awaiting approval from the U.S. Congress, and progress has been made during the strategic trade dialogue. The cost of the deal is estimated to be under $1 billion based on the previous agreement. The F414 engine will greatly enhance the capabilities of the LCA-MK2, and around 120-130 jets are expected to be produced. Discussions are also underway for co-development of an engine for the Advanced Medium Combat Aircraft (AMCA)-MK2. GE is currently the frontrunner for the deal.

Approval Process

Apart from awaiting approval from the U.S. Congress, there are still some commercial terms to be finalized for the jet engine deal. The agreement demonstrates trust in India's Intellectual Property Rights (IPR) regime and the security of the technology. The Cabinet Committee on Security (CCS) has already approved the development of the LCA-Mk2 at a cost of ₹9,000 crore.