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- 23 Jun 2023
- ICICI Securities
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GE AEROSPACE AND HAL SIGNS DEAL FOR CO-PRODUCTION OF ENGINES FOR TEJAS-MK2
HAL - 4866 Change: -49.50 (-1.01 %)News: GE Aerospace and Hindustan Aeronautics (HAL) has signed a memorandum of understanding (MOU) to jointly produce 98 kN thrust class GE-F414 engines for Light Combat Aircraft (LCA) Tejas Mk2 and Advanced Medium Combat Aircraft (AMCA) Mk1 for the Indian Air Force (IAF). As per the media sources, US has agreed for 80% technology transfer for the co-production of these engines. Eight F414 engines have already been delivered by GE as part of an ongoing development program for LCA Mk2.
Views: Considering the Indian Air Force (IAF) plan of procuring six squadrons of single engine Tejas MK2 and two squadrons of twin engine AMCA Mk1, we expect there is a total requirement of about 180 GE-414 engines. Since these engines will be manufactured at the facilities of HAL, we believe that this will be significantly positive in terms of increase in indigenization level and faster execution of Tejas Mk2 aircrafts. We also believe that, with the manufacturing of these 98 kN thrust class engines in India, indigenous development and production of engines (for UAVs which require relatively lesser thrust than fighter aircraft) is expected to see faster execution.
Impact: Positive