Defence grapevine indicate that the Ministry of Defence is now actively considering imposing financial penalties on Hindustan Aeronautics Limited (HAL) for failing to deliver any TEJAS MK-1A fighter jets to the Indian Air Force despite engines and airframes being available.

Defence Minister Rajnath Singh has reviewed the matter, signalling that accountability measures may be enforced to accelerate deliveries under contracts worth over ₹48,000 crore.

The Ministry of Defence has expressed serious concern over the prolonged delays in the TEJAS MK-1A programme, which is central to the Indian Air Force’s modernisation drive.

Despite the arrival of six GE F404-IN20 engines and reports that nearly 18 airframes are ready, HAL has not delivered a single aircraft to the IAF.

Deliveries were originally scheduled to begin in February 2024 under a ₹45,696 crore contract for 83 aircraft, but the timeline has slipped by over two years.

Officials have indicated that liquidated damages could be applied under the contractual terms, as HAL has failed to meet agreed delivery schedules.

Defence sources emphasised that while earlier delays were attributed to supply chain disruptions and engine shortages, those bottlenecks have now eased.

With engines available and airframes assembled, the government believes HAL should have delivered at least six aircraft by now. The penalties, if imposed, would serve both as a financial measure and as an institutional message of accountability.

The IAF has signed two major contracts with HAL for a total of 180 TEJAS aircraft, including 83 MK-1A fighters in 2021 and an additional 97 jets in 2025.

The MK-1A variant is an upgraded version of the indigenous Light Combat Aircraft, featuring advanced electronic warfare systems, improved radar, and integration of modern weaponry.

The program is critical for replenishing the IAF’s declining squadron strength, which has fallen well below the sanctioned level of 42 squadrons.

HAL has blamed delays on the late supply of engines from GE Aerospace, with only six delivered so far under a $716 million contract for 99 engines signed in 2021. The company has already penalised GE for missing deadlines, invoking liquidated damages clauses.

However, defence analysts argue that with funding secured, engines arriving, and airframes ready, HAL has little justification for continued delays.

Nearly five aircraft are reportedly fully assembled, with nine others having completed flight tests, awaiting engine integration.

The Defence Minister has directed HAL’s leadership to strictly adhere to delivery schedules and accelerate production. HAL has established three dedicated production lines—two in Bangalore and one in Nashik—to meet future requirements.

Officials expect that between 18 and 24 MK-1A aircraft could be ready by the end of 2026 if HAL manages to overcome current shortfalls.

The delays have strategic implications, as the IAF urgently requires modern combat platforms to maintain operational readiness amid regional security challenges.

India has also received inquiries from foreign nations interested in purchasing TEJAS aircraft, but the government has prioritised meeting domestic requirements before considering exports. The penalties under consideration are therefore aimed at ensuring HAL delivers on its commitments without further slippage.

In parallel, HAL is negotiating with GE for advanced GE-414 engines to power the TEJAS MK-2 and the upcoming Advanced Medium Combat Aircraft (AMCA).

Technical negotiations have been completed, and commercial discussions are ongoing. The AMCA project has already issued requests for proposals to shortlisted companies, with responses expected by July 2026.

The Ministry’s move to consider penalties underscores the seriousness of the situation. It reflects a broader effort to enforce accountability in defence manufacturing, ensuring that critical programs like TEJAS MK-1A do not suffer from avoidable delays.

The outcome will be closely watched, as it could set a precedent for how India manages its indigenous defence projects in the future.

IDN (With Agency Inputs)