India has imposed several penalties on GE Aerospace because the American company has not delivered the F404-IN20 engines for the indigenous Tejas MK1A fighter aircraft, according to a report by ThePrint on Tuesday, citing sources.

According to the reports, Prime Minister Narendra Modi and Defence Minister Rajnath Singh brought up the delay during their recent trips to the United States (US). GE was initially scheduled to begin engine deliveries in 2023. In August, the Indian Air Force (IAF) voiced concerns about the slow progress of the LCA Mk1A program. The first aircraft was originally expected to be delivered by March 31, 2024, but Hindustan Aeronautics Limited (HAL), the manufacturer of Tejas, later estimated that the delivery would now happen in November 2024.

By August, the delivery of F404 engines from GE Aerospace had been delayed for over a year, mainly due to supply chain problems. According to government sources reported by ThePrint, GE was originally scheduled to begin delivering the engines in March 2023. Now, GE has committed to starting the deliveries by either March or April 2025. The Indian Air Force (IAF) is worried that delays in the program could affect its combat readiness. As a result, officials have asked Hindustan Aeronautics Limited (HAL) to speed up the development. The LCA Mk1A is a more advanced version of the existing LCA Mk1.

The sources told the news portal that "all contract obligations will be met" and that "all clauses" will be triggered when asked if GE had been the target of a penalty clause.  According to reports from government officials, GE has been fined "more than once" for the delivery delay; however, they stated that "it is an ongoing process" and did not disclose the financial penalty. The sources further stated that the contract stipulated fines for each delivery schedule delay.

The US-based company was supposed to start delivering 99 engines for the 83 LCA MK 1A last year as part of the August 2021 contract between GE and HAL. According to government officials, GE's delivery delays were not caused by any "pressure tactics" used by the US, the news portal reported. Rather, they clarified, money problems have prevented a South Korean company with which GE has a partnership from delivering specific engine parts. According to one source, the government has instructed GE to share the technology needed to produce these components in India.

The delay in delivering the Tejas jets has been attributed to GE not providing the engines on time. According to reports, HAL can currently produce about five to six aircraft, but by next year, they will be able to make 24—if GE delivers the engines as expected. When questioned about why the IAF hasn't received any Tejas Mk1A aircraft yet, sources defended HAL by saying that a foreign company caused delays in deliveries. They mentioned that Israel, due to the ongoing conflict in the Middle East, was unable to integrate the radar on schedule.

Delivery of the Tejas aircraft will begin once the current trials are finished. The first Tejas Mk1A aircraft, named LA 5033, flew for the first time in March. However, it didn't use the new engine; instead, it flew with a Category B engine, which is a backup from a previous deal with GE.