Hindustan Aeronautics Ltd. (HAL) stocks rose over 3% on March 26 after GE Aerospace announced the delivery of the first F404-IN20 engine for the Tejas Light Combat Aircraft (LCA) Mk 1A fighter jet. HAL stocks stood at ₹4,152 per share in afternoon trading.
GE Aerospace highlighted the importance of the milestone in its four-decade partnership with HAL. “This marks an important milestone in our 40-year relationship with HAL and our commitment to India’s defense capabilities through next-generation fighter development and local production,” the company said.
The F404-IN20 engine was chosen to power the single-engine Tejas fighter aircraft in 2004, following the collaboration between GE Aerospace and the Aeronautical Development Agency (ADA) since the 1980s. “This was a big leap for India and GE Aerospace,” the company stated.
The engine supply was originally due to begin in 2023 under the terms of a ₹5,375 crore contract signed in 2021. It was then billed as HAL’s largest-ever engine contract by then HAL CMD R. Madhavan. GE Aviation Vice President of Business Development & Sales, Chris Cyr, reaffirmed the company’s commitment to delivering all 99 of the engines plus supporting services through 2029.
However, delays in the supply of engines have already slowed down HAL’s delivery of Tejas jets to the Indian Air Force (IAF), impacting the production timeline of the indigenous fighter jet.
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Source: Moneycontrol.
