New Delhi: Days after the Centre cleared a ₹62,000 crore deal to buy 97 additional LCA Mark 1A fighter aircraft, India is now close to finalising another key defence pact—this time with American aerospace giant GE. According to defence officials, negotiations are in the final stages for the purchase of 113 more GE-404 engines worth around USD 1 billion, and the deal is expected to be signed by September.

Hindustan Aeronautics Limited (HAL) has already inked a deal with GE for 99 GE-404 engines to power the first batch of 83 LCA Mark 1As ordered by the Indian Air Force. The proposed fresh order of 113 engines will cover the requirement for the next 97 aircraft.

“This will help HAL secure its complete requirement of 212 GE-404 engines in continuity, avoiding any type of delay in engine supplies,” a defence official told ANI.

HAL is aiming to deliver the first 83 aircraft by 2029-30, with the next batch of 97 fighters scheduled for delivery by 2033-34. GE, meanwhile, is expected to ramp up supplies to two engines per month to meet its commitment to the Indian programme.

In parallel, HAL is also negotiating a much larger deal with GE for the GE-414 engine, which will include 80 per cent transfer of technology (ToT). India requires around 200 GE-414 engines for the upcoming LCA Mark 2 jets and the indigenous Advanced Medium Combat Aircraft (AMCA).

“The around USD 1.5 billion deal is likely to be signed in the next few months, and negotiations have been going on for a long time now,” officials said. Of these, 162 engines will power the LCA Mark 2, while another 10 will be used for the five AMCA prototypes.

The indigenous fighter aircraft programme is seen as critical to replacing the IAF’s ageing MiG-21 fleet, which is finally being phased out in the coming weeks. Officials emphasised that the project enjoys “full backing from the Defence Ministry and Air Headquarters” and will not only boost indigenisation but also generate significant business for small and medium enterprises in India’s defence ecosystem.

India is also pressing ahead with its own indigenous fighter jet engine project, in collaboration with French firm Safran, as part of its long-term goal of achieving self-reliance in defence manufacturing.