homeindia NewsUS Congress approves pact to jointly make F 414 fighter jet engines for Indian Air Force

US Congress approves pact to jointly make F-414 fighter jet engines for Indian Air Force

The joint venture between GE Aerospace and Hindustan Aeronautics Limited (HAL) to produce fighter jet engines for the Indian Air Force has received approval from the US Congress. The agreement, which has an estimated value of $1 billion, entails 80 per cent transfer of technology.

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By CNBCTV18.com Aug 31, 2023 5:37:50 PM IST (Published)

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US Congress approves pact to jointly make F-414 fighter jet engines for Indian Air Force
The United States Congress has granted approval to the collaborative effort between GE Aerospace and Hindustan Aeronautics Limited (HAL) to manufacture fighter jet engines for the Indian Air Force. This agreement, which was initially formulated during Prime Minister Narendra Modi's visit to the US in June, is poised to elevate the defence cooperation between India and the US. The partnership entails the local production of F-414 jet engines for the light combat aircraft (LCA) Mk2, which is under development.

With an estimated value of around $1 billion, the deal involves an 80 per cent transfer of technology (ToT). This arrangement is expected to result in a substantial increase in indigenous content for the new fighter jet, reaching approximately 75 per cent. This figure stands in stark contrast to the 55-60 per cent indigenous content of LCA Mk-1A and 50 per cent in the existing variants, reported Hindustan Times (HT).
The final agreement with GE Aerospace is anticipated to cover the production of 99 F-414 engines under licence and is likely to be finalised during the current fiscal year. The first batch of these engines is projected to be manufactured in India three years from now.
The scope of ToT encompasses 11 critical areas, a marked departure from a decade ago when discussions between GE and India’s Aeronautical Development Agency (ADA) first began. In the past, only 58 percent of technology transfer was agreed upon, withholding key engine technologies from India's access.
The F-414 engine itself is an evolution of the F-404 engine, which currently powers the LCA Mk1 and Mk1A. The Indian Air Force had earlier signed a contract for 83 Mk-1A jets in February 2021, which brought the total orders of LCA variants to 123. The earlier LCA Mk-1s are in varying stages of operational clearance. The forthcoming LCA Mk-2 is poised to play a pivotal role in the Indian Air Force's future combat capabilities, and there are plans to build 130 of these fighter jets.
An anonymous source familiar with developments within Capitol Hill, the headquarters of the US Congress, told HT that all legislative requirements have been met. The approval process was initiated prior to Prime Minister Narendra Modi's visit, and the necessary notifications were made to the House and Senate Foreign Relations Committee on July 28. With no objections raised during the subsequent 30 days, the deal received the green light. Discussions surrounding the agreement are expected to progress during President Biden's visit to India for the upcoming G20 Summit in September.
While a US administration official refrained from confirming the status of the Congressional process, they expressed optimism about the forward momentum of the agreement. “We are working towards and expecting the necessary steps on both sides to be able to move forward on this historic agreement,” the official commented.

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