Hindustan Aeronautics Limited (HAL) has officially initiated the recovery of liquidated damages from GE Aerospace following significant delays in the delivery of F404-IN20 turbofan engines.

This financial penalty, confirmed by HAL Chairman and Managing Director DK Sunil, stems from a 2021 contract valued at $716 million for 99 engines intended to power the TEJAS MK-1A light combat aircraft.

Under the terms of the agreement, HAL is invoking the penalty clause for every instance of a missed delivery deadline.

The scale of the backlog is substantial; despite the 2021 order, the American aerospace giant has delivered a mere six engines to date. The first unit only arrived in March 2025, leaving the production of the 83 aircraft currently on order in a state of flux.

GE Aerospace has previously cited global supply chain disruptions as the primary cause for the slowdown but maintains that it is working to ramp up production to meet Indian requirements.

The engine shortage has directly impacted HAL’s delivery schedule to the Indian Air Force (IAF). Although the first aircraft was originally slated for handover in March 2024, deliveries have yet to commence.

At present, 20 TEJAS MK-1A airframes are ready for completion, but only five are currently equipped with the necessary powerplants. GE has reportedly offered assurances that 20 additional engines will be delivered by the end of 2026, with an increased rate of more than 20 units annually starting in 2027.

Beyond hardware constraints, the program is also navigating technical and certification hurdles. Deliveries are contingent upon the successful completion of trials for the Advanced Short-Range Air-to-Air Missile (ASRAAM) in its specific TEJAS configuration, alongside critical radar software upgrades.

The IAF is expected to conduct a comprehensive review of the programme’s progress in May to assess the impact of these delays on its frontline combat strength.

In a separate development, the existing TEJAS MK-1 fleet is set to resume flight operations next week. The aircraft have been grounded for approximately two months following the discovery of a software glitch within the braking system. A local modification committee has since approved a fix for the snag, clearing the way for the jets to return to the skies.

The TEJAS program has faced a string of recent challenges, including two high-profile accidents. In November 2025, an IAF pilot tragically lost his life when an TEJAS MK-1 crashed during a demonstration at the Dubai Air show.

This followed a previous incident in March 2024 near Jaisalmer, where the pilot safely ejected.

Despite these setbacks and the current delivery friction, HAL recently expanded its commitment to GE Aerospace, signing a $1 billion deal in late 2025 for a further 113 engines to power a second batch of 97 aircraft.

Agencies