India is reportedly close to signing a $1 Billion deal with the United States firm GE for the supply of 113 more GE-404 engines for the Light Combat Aircraft Tejas.
This comes days after the Centre cleared a Rs 62,000 crore deal to buy 97 more LCA Tejas Mark 1A fighter jet aircraft.
The negotiations between India and the US firm for buying 113 more GE-202 engines is in the final stage and the deal is likely to be inked by September this year, reported ANI, citing defence officials.
The deal is expected to help Hindustan Aeronautics Limited (HAL) to get its complete requirement of 212 GE-404 engines in continuity, avoiding any types of delays in engine supplies. Notably, the HAL will be supplying 82 by the end of 2029-30 and the next batch of 97 LCA Mark 1As by 2033-34.
The US firm is expected to supply two engines per month from now to fulfil its commitment for the Indian programme.
India’s Hindustan Aeronautics Limited (HAL) and American firm GE have already inked a deal for 99 GE-404 engines and 83 LCA Mark 1A fighter jets. The 113 jet engines would be in addition to that, the report said.
The deal is meant to aid the Indian Air Force in replacing its MiG-21 fleet.
The reports of India’s HAL closing a deal with US’ GE comes when the relations between the two nations are on a downturn after President Donald Trump doubled tariffs on Indian goods.
Trump has imposed an additional 25 per cent tariff of Indian goods entering the US, coming into effect on August 27, taking the total to 50. The Trump administration has placed India among the “most heavily” taxed trading partners of the US, far above rivals such as China, Vietnam, and Bangladesh.