NEW DELHI: The delays in the supply of the engines from the US have attracted the penalty clause. Also, lessons from the Rafale fighter aircraft Procurement process have triggered the government to work for a new procurement process shunning controversy and safeguarding national security information.
Highly placed sources confirmed that the penalty clause against the United States engine manufacturer General Electrics has been invoked for the delay in the supply of the engines contracted by India for Light Combat Aircraft Tejas.
As per the penalty clause, reasonable compensation is sought by the aggrieved party.
The supplies are expected to start by March 2025 as confirmed by sources and it was discussed with the US at the highest levels.
Prime Minister Narendra Modi had raised the issue with the United States (US) during his September visit there.
“India and the US have all agreements required to integrate the defence industry and “they need us and we need them”.
83 LCA Tejas Mk 1A was ordered at Rs 46,000 crore in 2021, delivery was to start in March. 97 LCA Tejas Mk 1A for Rs 67,000 crore was cleared by DAC in November 2023. 40 LCA Tejas Mk 1 were ordered initially, of which 35 have been inducted till now
Tejas is a single-engine, lightweight multi-role fighter, originally meant to replace MiG 21.
Admitting the “frustration of the Chief of Air Staff (CAS) is understandable,” sources added, “It is a purely logistics matter which the GE is facing due to problems with its suppliers and it has nothing to do with the HAL.
CAS AP Singh said in October “It is a known fact that Tejas has been delayed. There is no doubt. There is also a promise that the production rate will be increased to 24 aircraft per year. If that promise is kept, I think the delays can be caught up with. The first aim is not to let our aircraft strength go down,” he said.
Meanwhile for the General Electrics’ Engine (GE-414) negotiation for the commercial terms is undergoing with the Hindustan Aeronautics Limited (HAL).
Further, the government is working on a new procurement system under which, in case of any controversy and legal entanglement, sensitive information about the arms and equipment could be safeguarded.
This lesson, as the sources informed, has been drawn from the procurement controversy pertaining to the Rafale medium multi-role combat aircraft (MMRCA) from France’s Dassault Aviation.
The particular procurement process became an issue of political slugfest with allegations of involvement of commission and bribing.
“Government had to provide in court every piece of information which also included those which were sensitive to national security,” sources said.
The government is following a cautious and considered model and “we are working to get hold of a model so that we are not hauled to courts and asked to reveal national secrets.”
Adding on the ongoing proposal for the procurement of 114 Multi-Role Fighter Aircraft (MRFA) IAF combat jets informed that the discussions are on.
The plan is to procure 114 MRFAs for the Indian Air Force under the ‘Make in India’ scheme under which Indian companies would be allowed to partner with a foreign vendor. These 114 fighter jets along with the induction of Light Combat Aircraft Tejas are seen as significant to plug the fast dwindling combat strength which hovers around 30 Combat Squadrons.
Officially, the IAF is supposed to have 42 squadrons of combat squadrons to handle the challenges.
In a positive development, “the talks with Indonesia regarding the supply of Brahmos Cruise Missiles and LCA Tejas are going well. With the good relations between the top leadership of the two countries it is expected to reach a positive conclusion,” said sources.
