Tejas MK-1A Fighter Jet Engines: Why HAL Imposed Fines On GE Aerospace, Timeline Of Delays & What Next

Last Updated:April 14, 2026, 18:22 IST

F404-IN20 engines intended for the Tejas Mk-1A fighter jets delayed, only six of the 99 ordered engines have been delivered

The Hindustan Aeronautics Limited (HAL) has imposed contractual penalties (liquidated damages) on GE Aerospace for delayed deliveries of F404-IN20 engines intended for the Tejas Mk-1A fighter jets. Only six of the 99 ordered engines have been delivered.

While the exact total penalty has not been officially disclosed, defence ministry norms generally cap such damages at 10% of the total contract value, according to the Times of India and India Today.

The timeline of delays and penalties

• February 2021: The Ministry of Defence signed a Rs 48,000-crore deal with HAL for 83 Tejas Mk-1A jets.
• August 2021: HAL signed a $716 million contract with GE Aerospace for 99 F404-IN20 engines.
• March 2023: Original scheduled start for engine deliveries.
• March 2024: The original deadline for delivering the first Tejas Mk-1A aircraft to the Indian Air Force (IAF) was missed due to the lack of engines.
• March 2025: GE Aerospace delivered the first engine, nearly two years behind the initial schedule.
• November 2025: Despite ongoing delays, HAL signed a second, larger contract worth approximately $1 billion for 113 more F404 engines for a future batch of 97 jets.
• April 2026: HAL confirmed it is actively invoking penalty clauses for every delayed engine delivery.

Only 6 out of 99 engines from the first order have been delivered so far. GE Aerospace committed to delivering 20 engines by the end of 2026 to help stabilise the production line, said reports.

How does the penalty system work?

Penalties are applied as liquidated damages deducted from payments for each engine delivered beyond its stipulated schedule.

Contractual penalties are typically limited to 10% of the contract’s total value ($71.6 million for the first $716 million deal).

The delay has stalled the production of approximately 20 airframes that are structurally complete but remain grounded without powerplants.

Why the delay?

GE Aerospace has attributed the missed deadlines to global supply chain disruptions, component shortages, and challenges in restarting the F404 production line after a long gap. Some reports also suggest that geopolitical conflicts in the Middle East have impacted logistical routes.

What next? New facility; agreement on technical matters

US defence major GE Aerospace on Monday announced firming up of a contract with the Indian Air Force (IAF) to set up a maintenance facility for its F404-IN20 jet engines which are powering India’s Tejas light combat aircraft fleet. The facility will be established by the IAF with technical inputs from GE Aerospace and is expected to help India’s indigenous defence sustainment effort, the company said.

Once operational, the facility will eliminate the need to depend on the overseas repair centres, significantly improving turnaround times, it said.

“GE Aerospace and Hindustan Aeronautics Limited (HAL) are pleased to announce significant progress regarding F414 co-production today, having reached agreement on technical matters. This agreement marks a significant step forward in strengthening economic growth and advancing cooperation for both India and the U.S. and expands the 40-year partnership between GE Aerospace and HAL," GE Aerospace spokesperson told ANI, ahead of the contract expected later this year.

KEY FAQs

Why has HAL penalised GE Aerospace?

Because of prolonged delays in delivering F404 engines for the Tejas Mk1A programme, which has slowed aircraft production.

How long is the delay in engine deliveries?

Deliveries meant to begin in 2024 were pushed to 2025, with only a handful of engines supplied so far—causing a delay of over two years in the programme.

What kind of penalties are being imposed?

HAL is invoking contractual “liquidated damages", imposing fines per delayed engine, with penalties capped under contract terms.

With agency inputs

News explainers Tejas MK-1A Fighter Jet Engines: Why HAL Imposed Fines On GE Aerospace, Timeline Of Delays & What Next

Read More