HAL Secures $1 Billion GE Engine Deal for Fighter Jets and Partners for Civil Aircraft Production

Hindustan Aeronautics Limited (HAL) has announced a major deal worth $1 billion with US-based General Electric Company (GE) for the supply of 113 F404-GE-IN20 jet engines and a support package. These engines are destined for India's Light Combat Aircraft (LCA) Mk1A program, specifically for 97 aircraft. Engine deliveries are scheduled to commence between 2027 and 2032, ensuring a continuous supply for the program, which had its aircraft contract signed earlier in September 2025. This agreement aims to prevent any potential delays in engine procurement.

In a separate significant development, HAL also entered into a Memorandum of Understanding (MoU) with Russia’s Public Joint Stock Company United Aircraft Corporation (PJSC-UAC). This pact focuses on the production of the SJ-100 civil commuter aircraft within India. Signed on October 27, 2025, this collaboration is set to enable HAL to manufacture the SJ-100 for the Indian domestic market. The SJ-100 is a twin-engine aircraft already in operation globally.

Impact: This news has a substantial positive impact on HAL's order book and India's defense manufacturing capabilities. The GE engine deal strengthens the LCA program, while the SJ-100 pact marks a significant step towards indigenous passenger aircraft manufacturing, aligning with the 'Aatmanirbhar Bharat' vision and boosting regional air connectivity. It is expected to create numerous job opportunities and enhance India's aviation ecosystem. The impact on the Indian stock market for HAL could be significant, reflecting its enhanced order book and strategic importance. Impact Rating: 8/10.

Difficult Terms: LCA Mk1A: Light Combat Aircraft Mark 1A, an advanced variant of India's indigenous fighter jet. F404-GE-IN20 engines: Specific model of jet engines manufactured by General Electric for aviation use. MoU: Memorandum of Understanding, a preliminary agreement outlining the terms of a potential future contract or collaboration. SJ-100: A twin-engine, narrow-body regional jet aircraft. UDAN scheme: 'Ude Desh Ka Aam Nagrik', a regional airport development and airline connectivity scheme in India. Aatmanirbhar Bharat: A Hindi phrase meaning 'self-reliant India', promoting domestic production and manufacturing.