HAL Gets First GE Aerospace Engine For Tejas LCA Fighter Jets

HAL share price advanced 3.8% intraday to Rs 4,185 apiece after the news.

HAL had contracted GE for 99 of these engines worth Rs 5,400 crore in 2021, but deliveries have been delayed.(Photo source: Sajeet Manghat/ NDTV Profit)

Hindustan Aeronautics Ltd. received the first of the nearly 100 advanced engines it has ordered from US defence major GE Aerospace for the Tejas fighter jets.

GE Aerospace's F404-IN20 engine was selected for the single-engine Tejas Light Combat Aircraft Mk-1A jets in 2004. HAL had contracted GE for 99 of these engines worth Rs 5,400 crore in 2021, but deliveries have been delayed.

HAL bagged the order for 83 Tejas Mk-1A worth Rs 46,900 crore in February 2021, originally slated for rollout in 2023. However, delays in engine supply and production setup postponed the schedule.

In a statement, GE Aerospace said restarting the jet engine production line after closure in 2016 was challenging during the Covid pandemic. "With a high focus on safety and quality, and a remarkable commitment from our supply chain teams and our suppliers and partners, we have managed to restart the line."

Last month, Sanjeev Kumar, secretary of defence production, said the much-awaited rollout of the Tejas jets is set to begin by the next financial year, as HAL and General Electric have stabilised their production lines.

Despite the Indian Air Force placing orders for Tejas to replace its ageing fleet, production delays have pushed timelines. HAL's production line is now stabilised for the fiscal ending March 2026, with a capacity to deliver up to 24 aircraft per year.

GE Aerospace's F404-IN20 engine was selected for the single-engine Tejas Light Combat Aircraft Mk-1A jets in 2004. (Photo source: GE Aerospace)

GE Aerospace's F404-IN20 engine was selected for the single-engine Tejas Light Combat Aircraft Mk-1A jets in 2004. (Photo source: GE Aerospace)

Also Read: HAL Defrauded Of Rs 55 Lakh Over Missing 'E'

HAL Share Price Up

HAL share price advanced 3.8% intraday to Rs 4,185 apiece. The scrip was trading 3.4% higher at 1:15 p.m. The benchmark NSE Nifty 50 was down 0.46%.

The stock has risen 25% in the last 12 months and fallen 1.1% on a year-to-date basis. The total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 69.

Fifteen out of the 16 analysts tracking HAL have a 'buy' rating on the stock, and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 17%.

Also Read: Stock Market Today: Nifty Snaps Seven-Day Gaining Streak, Sees Steepest Fall In Nearly A Month

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Shubhayan Bhattacharya
Shubhayan covers markets and business news at NDTV Profit. He has a keen in... more
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