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HAL has denied claims that its talks with GE Aerospace regarding local production of GE414 fighter jet engines have stalled. The discussions remain on track for the LCA Mk2 programme.
Hindustan Aeronautics Ltd (HAL) has officially denied recent media reports suggesting that negotiations with GE Aerospace for the local production of GE414 engines have stalled. The state-run aerospace and defence major called the claims factually incorrect and misleading, reaffirming that talks remain active and are progressing under an existing Memorandum of Understanding (MoU).
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HAL clarifies that GE414 engine negotiations are ongoing and have not stalled.
HAL is not exploring alternative engine manufacturers for the LCA Mk2 programme.
The contract negotiation process began in December 2024 with GE Aerospace.
A formal MoU was signed in June 2023 during the Indian Prime Minister’s US visit.
HAL share price may see limited impact given the clarification on continued progress.
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The GE414 engine is a crucial part of India’s Light Combat Aircraft (LCA) Mk2 programme, with local manufacturing being a significant step toward indigenous defence capability. HAL confirmed that it has constituted a Contract Negotiation Committee and is actively working with GE to finalise the agreement. Specific technical documents have been requested from GE to assess the feasibility of technology transfer and localisation.
Aspect | Details |
Agreement Type | Memorandum of Understanding (MoU) |
Date of Signing | June 2023 |
Programme | Light Combat Aircraft Mk2 (Tejas Mk2) |
Engine Model | GE Aerospace’s F414 engines |
Negotiation Start Date | 3 December 2024 |
Localisation Goal | Technology transfer and engine production in India |
The MoU was signed as part of India-US defence cooperation during Prime Minister Narendra Modi’s visit to the US in 2023. GE Aerospace has a longstanding presence in India, with major centres in Bengaluru and Pune, making it a suitable partner for co-development and production.
The clarification comes amid increasing speculation about alternate options for fighter jet engine sourcing. HAL has decisively rejected such claims, confirming that no talks are being held with any other manufacturer regarding the LCA Mk2 powerplant.
Following this clarification, HAL share price is likely to stabilise as uncertainty over the engine deal clears. HAL share price closed the previous session with minor fluctuation, and future movements may depend on key milestones in the engine contract finalisation. Continued progress in the GE414 project is expected to reinforce investor confidence in HAL’s long-term strategic plans.
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Source: Livemint
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