Hindustan Aeronautics Ltd. denied on Wednesday media reports that talks with General Electric for local production of GE414 engines have stalled, asserting that negotiations are on track and progressing well.
In an exchange filing, HAL dismissed the article that claimed discussions had hit a significant roadblock and that HAL was in talks with another engine manufacturer.
“The report is factually incorrect and misleading,” HAL said. “HAL reiterates that negotiations with GE are on track and progressing well, and HAL is not in talks with any other company regarding engines for LCA MK2. Any information suggesting otherwise is incorrect.”
According to earlier reports, HAL formed a Contract Negotiation Committee to oversee discussions with GE. Talks reportedly began on Dec. 3, 2024, and while no final agreement has been reached, HAL has asked GE for specific technical documents to assess the proposed transfer of technology.
The overall deal is estimated to be worth around $1 billion at 2023 price levels, with GE reportedly seeking an additional $50 million for the agreement. However, HAL has dismissed any suggestion of negotiations stalling or alternative talks underway.
The GE414 engines will power the indigenous Light Combat Aircraft MK2, a critical element in India's fighter jet modernisation efforts. HAL's assertion underlines its commitment to finalising the agreement with GE and advancing the LCA MK2 programme.
Shares of the defence player closed 0.49% lower at Rs 4,964.9 apiece on the NSE, compared to a 0.32% advance in the benchmark Nifty 50.
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