American company GE will have to pay a penalty as per the terms of the contract for two years’ delay in the supply of engines for Tejas Mark-1A, the upgraded version of the indigenous fighter aircraft Tejas.
GE was to supply engines for Tejas Mark-1A, considered very important for the fighter planes of the Indian Air Force (IAF), in March 2023, but these engines have not been received yet.
GE has now said that it will supply these engines from April next year.
Government sources aware of this entire matter have said that India has imposed a penalty against GE as per the terms of the contract for not supplying the engines on time.
Sources said that Prime Minister Narendra Modi, Defence Minister Rajnath Singh and National Security Advisor (NSA) Ajit Doval had raised the issue of delay in supply of engines with the US during their visits to the country at different times.
Following this, the American company has asked for time to start delivery of engines from March or April next year.
They said that the reason for not getting the supply of engines is not due to any pressure, politics or other issue, but it is not being done due to technical reasons.
One reason GE attributed to is the lack of equipment from South Korea for these engines.
Tejas Mark-1A is an upgraded version of the indigenously developed Light Combat Aircraft Tejas and the Indian Air Force is in great need of these aircraft for its fighter aircraft fleet.
This aircraft is being manufactured by the public sector undertaking Hindustan Aeronautics Limited (HAL) for the Air Force.
The Defence Ministry had signed a deal worth Rs 48,000 crore with HAL for the purchase of 83 Tejas Mark-1A aircraft in the year 2021. After this, in August the same year, HAL signed an agreement with GE for the purchase of F-404 engines for 99 aircraft. GE had said that it will start supplying engines in March 2023.