4 days ago
HAL shares fall over 2% following concerns over stalled F414 engine talks with GE
Shares of Hindustan Aeronautics Limited (HAL) fell 1.59% to ₹4,909.80 in early trade on June 4, following reports that its crucial jet engine deal with General Electric (GE) has hit a roadblock. The stock had earlier opened higher and briefly touched ₹5,050, but soon reversed gains and fell over 2% amid rising investor caution.
According to a report by Indian Defence Research Wing ( negotiations for the co-production of the GE F414 engines in India—intended to power the Tejas MkII and serve as interim engines for the AMCA MkI—have reportedly stalled. The Trump administration is reportedly reluctant to allow full-scale technology transfer, creating uncertainty over the ₹8,000 crore ($1 billion) deal signed in June 2023.
The agreement, which promised 80% transfer of technology and critical access to proprietary components like single-crystal turbine blades and laser drilling, now faces hurdles around cost escalations and intellectual property rights. GE is reportedly seeking an additional $500 million and resisting the transfer of key 'hot section' tech, which is vital for engine efficiency and long-term independence.
As of now, HAL is said to be exploring alternatives, including the French Safran M88 Eco engine. Meanwhile, the lack of clarity surrounding the deal adds to concerns about timelines for India's next-gen fighter projects, including the Tejas MkII and AMCA.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
