India and the US are set to collaborate on fighter jet engine production. The General Electric (GE) and Hindustan Aeronautics Limited (HAL) will be transferring approximately 80% of the jet engine technology.
As reported earlier, India and the US were close to an agreement to jointly produce fighter jet engines during PM Modi’s visit to the US. According to unidentified sources, the deal is worth about seven billion dollars and negotiations are going on both sides regarding payment mechanisms, machinery procurement and tech transfer. According to reports, approval has been granted for this agreement by both India and US and they are now set to collaborate and now involves General Electric Co. partnering with state-owned Hindustan Aeronautics Ltd. to produce engines for the Tejas light-combat aircraft.
No such engine technology from the US has been shared this widely before with other countries. Sources further stated that no country had ever received such a level of technology transfer from the US, the UK, or France.
This agreement is expected to boost India’s fighter jet programme as well as its air force. Strengthening of Mdi’s image is also expected as he looks forward to a third term in office in national elections next year.
The collaboration will take place as soon as the deal is signed between GE and HAL. The technology transfer will most likely take place in phases, with 80% of the value being added to the engine occurring in India within three years.