HAL gets in-principal approval for GE deal to manufacture engines in India

7 Jun 2023 , 11:25 AM

During their upcoming meeting in Washington DC, scheduled between June 21-24, 2023, Prime Minister Narendra Modi and US President Joe Biden are all set to unveil a significant defense agreement.

Following the approval from the US government for General Electric (GE) to transfer jet engine manufacturing technology to India, both parties have reached a preliminary agreement regarding the deal.

As per the sources, the American defense company will be signing an agreement with Hindustan Aeronautics Limited (HAL) for the co-production of jet engines in South Asia. The technology will fuel India’s fighter jet program once the MoU is operational.

Reportedly, the two companies entered into an agreement for the manufacturing of jet engines in India in 2012, but the deal was called off as the government was seeking higher levels of technology transfers.

The central government has not yet announced a site in India for the co-production of GE jet engines. However, HAL already operates an engine division in Koraput, Odisha. So, this could be one of the locations under consideration.

Some of the sources highlighted that on the broader level, about 500-600 MSMEs could be benefitted from this agreement.

The details of the technology transfer, timelines, and payment arrangements are currently being discussed before the final agreement is formally signed during the Prime Minister’s visit.

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