Exclusive | ‘US tariff tensions have no impact on fighter engine negotiations with GE’: HAL chief

“My view, based on discussions with GE and also with members of the US government, is that it (the strain over tariffs) has had absolutely no impact on the defence sector. There has been no negative indication as far as we are concerned,” he said.

He also said that negotiations with GE on the transfer of technology for the F414 engines, which will power the LCA Mk 2, are taking time because HAL is being “extra careful” to prevent any confusion later.

On the Rs 62,370-crore deal signed between HAL and the Ministry of Defence earlier this week for buying an additional 97 LCA Mk 1A for the IAF, Sunil said the decision comes as a “vote of confidence” from the government.

“It is a vote of confidence that we are doing well, notwithstanding the negative things being said. The government is confident that we can do it. So, it’s a very good thing, both for HAL as the company, and for all the companies that depend on us,” he said, adding that there are numerous companies, both small and large, working with HAL.

“So the moment you say you have such an order, and you have visibility for the next so many years, they can make their plans as well. So, for them, it’s very good news,” he said.

In all, HAL will supply 180 LCA Mk 1A to the IAF. The initial Rs 48,000-crore order of 83 aircraft was signed in 2021, and deliveries were scheduled to begin last year. The order for an additional 97 aircraft was signed Thursday.

Asked about the delay of over a year-and-a-half in commencing the delivery of the 83 fighters ordered initially, he said there is no problem in the execution of the order.

“We have already built 10 aircraft. 10 aircraft are flying, the 11th one is ready. We have tested them, flown them and kept them ready, and we have three ready with engines. So, as far as the execution is concerned, I think there is no problem. We have already done it,” he said.

Secondly, he said, HAL has the capacity. “We have opened the third line in Nashik, where the first aircraft is already ready, and in October, it will also be inaugurated. We have worked with the private sector to build the fourth assembly line (for the fighters), he said.

“So, we have addressed the question of capacity and execution. Now, coming to this question, let’s wait till the 83 is done, and then we will give you 97, the problem is with the supply chains,” he said.

“If you remember, for the last 40 aircraft (LCA Tejas Mk 1), we had taken engines from GE Aerospace. Then there was a big gap, and GE shut down the 404 engine line because they didn’t have orders,” he said.

“And then when we gave the following order for the 83, which was 99 engines, they had to ramp it up again, certify it, and all that takes time. So, in this business, people will be interested as long as you have orders flowing continuously. Otherwise, they may look out for something else,” he said.

“So it is in our interest that we conclude this order, and then we can trigger the supply chain and start issuing all those orders. Otherwise, we would end up in the same kind of situation,” he said.

“Today, I can assure you that at the highest level of GE, they are monitoring it. So, that’s the kind of interest, and that will come when they see that there is significant business. We gave them a big order last time, and this order of 113 engines is now finalised and is worth over $1 billion. So, obviously from their side, there is more interest, because there’s a significant number of engines to build, and thus more business,” he said.

On the fresh, realistic timelines, he said GE has said 12 engines will be delivered by March 2026. “Since the airframes are ready and tested, it’s just about the integration of engines. We are looking at the delivery of 12 aircraft by the end of this financial year.”

Asked about the fresh timelines for flight and delivery of the LCA Mk 2, he said it will fly by early 2027, following which there would be three years of certification. “It should enter production by 2030-31,” he said, adding that after the basic aircraft is ready, a limited series production order for a small number of aircraft could be done and based on feedback, a larger number of deliveries could be carried out on the lines of the LCA Tejas Mk 1.

The LCA Mk 1A is a 13-tonne aircraft which will be integrated with the homegrown ASTRA missile and the Advanced Short Range Air-to-Air Missile (ASRAAM) produced by MBDA. The LCA Mk 2 will be an 18-tonne aircraft that will be integrated with the Uttar Radar, indigenous Electronic Warfare (EW) suite, and other weapon systems.

The HAL has also nearly finalised two other Indian firms to form a consortium that will participate in the Advanced Medium Combat Aircraft (AMCA) programme. The AMCA will be India’s indigenous fifth-generation stealth fighter aircraft. Firms have to respond to an Expression of Interest (EOI) floated by the Aeronautical Development Agency (ADA) by September 30.

Asked about the reasons for the delay in finalising the deal with GE Aerospace on the joint manufacturing of the F414 engines for the LCA Mk 2, he said HAL is trying to look at every single item, the way it will be produced, the details of the technology transfer to avoid confusion later.

He said there are options of tying up with the company for the process or “build it with our experience” and then get it certified by GE.

“That’s where it is taking time. We are fleshing out each single item, discussing how we will produce this, this is the process. We are trying to get as much information so that when we enter into it, we are clear what the areas are, how we go about it,” he said.

He said GE has understood India’s requirement. “80 per cent technology transfer means you have to do everything, from getting raw material, to plating, to machining to assembling and testing,” he said, adding that GE has expressed its inability to transfer some key technologies owing to ITAR (International Traffic in Arms Regulations) restrictions.

“Commercial negotiations will start later, we are at the end of the technical part and finalising the terms and conditions. In another three to four months, we will be able to complete that and then come to a conclusion,” he said.

“The investment is huge, we have to pay them a lot of money in terms of licence fees. We are being extra careful so that tomorrow there should be no confusion,” he said.

On the rationale behind the move to take aero engine technology transfer from two different global giants – the F414 engine GE Aerospace and a 120 KN engine from Safran of France – for the LCA Mk 2 and the AMCA, respectively, Sunil said the aircraft design starts with identifying the engines, considering there are just a handful of countries that possess this key technology.

“First, you look at the thrust-to-weight ratio and the power required. Then you select a candidate engine. The aircraft gets built around that. Changing the engine at that point will be akin to a redesign,” he said, adding that the LCA Mk 2 was designed keeping the GE F414 engine in mind.

He said HAL is also independently working on some smaller engines, such as starter engines for aero engines. “About eight years ago, we also started designing next-level engines, Advanced Light Helicopter-class helicopter engines and for trainer aircraft like the Hawks,” he said, adding these are progressing well and are funded by HAL.

According to Sunil, other scheduled deliveries by HAL include major platforms like the Light Utility Helicopters, set to begin next year, which will be a replacement for the ageing Chetak and Cheetah helicopters, and six HTT-40 basic trainer aircraft by the end of this financial year.