Technical, price bids submitted in fighter jet engine deal with US

India is preparing to sign a landmark deal with the US for fighter jet engine technology within the next six months, with General Electric Co. submitting techno-commercial bids, which would be followed by detailed discussions on technology transfer.

People aware of the developments said the manufacturing licence agreement for producing GE414-INS6 engines in India under a technology transfer pact is in the final stages of getting approved by the Indian government and that the bid submitted by GE is currently being examined. The estimated $1 billion deal will lead to 80% technology transfer for the engines, which will include coating for the hot end of the engine as well as crystal blades and laser drilling technology. The next stage of discussions with GE is crucial as they will determine the size and scope of the technology transfer, the people said.

The Hindustan Aeronautics Ltd, chosen for the deal, has already identified land in Bengaluru for building the new engine factory. Environmental and pollution clearances for the project are currently being processed and the plan is to have the facility operational within two years of signing of the contract.


As part of the deal, 99 engines will be manufactured in India, which will power the Mk2 variant of the Light Combat Aircraft. The air force has projected a demand for 120-130 of the Tejas Mk2 fighters, which if accepted is likely to grow the order size beyond 99 engines.

India is also developing twin engine deck-based fighters for the navy that are likely to be powered by the F414. The first two squadrons of the futuristic Advanced Multirole Combat Aircraft (AMCA) will also be powered by the same engine.

It is also learnt that negotiations have also been initiated with GE for supplying more GE404 engines to support an upcoming order for 97 LCA Mk1A aircraft.