Defence Minister Rajnath Singh reviewed the progress of major ongoing projects of Hindustan Aeronautics Limited at a meeting in KB-2 on Monday. Photo | X via @DefenceMinIndia
India

Defence Ministry mulls financial penalty on HAL for Tejas Mk1A delays

IAF may grant additional concessions to speed up Tejas MK1A induction amid fighter shortfall.

Javaria Rana

NEW DELHI: The defence ministry is weighing financial penalties against state-run Hindustan Aeronautics Limited (HAL) over its persistent failure to deliver the Tejas Mk1A fighter jet to the Indian Air Force (IAF), with the programme now running more than two years past its original deadline.

The programme review, itself delayed by a month owing to HAL’s lack of progress, was finally held Monday. Defence Minister Rajnath Singh chaired the meeting, attended by Chief of Defence Staff General N S Raja Subramani, Air Chief Marshal A P Singh, Defence Secretary Rajesh Kumar Singh, HAL Chairman and Managing Director Ravi Kota and other senior officials.

Sources in the defence establishment told TNIE that the financial penalty being considered against HAL is not punitive in the extraordinary sense but stems from a standard contractual clause that can be invoked in cases of delayed delivery

Incidentally, HAL has itself used the same provision against American engine maker GE Aerospace for delays in supplying F404 engines, a critical bottleneck in the programme. GE has delivered far fewer engines than scheduled, with only six currently available with HAL. 

Moreover, the IAF has already granted certain relaxations and is learnt to be considering further concessions to facilitate early induction.

As reported earlier, the key challenge holding up induction has been the integration of the AESA radar with the aircraft’s electronic warfare suite and onboard mission systems. Beyond radar certification, missile firing trials and full weapons package validation remain non-negotiable benchmarks.

With just 29 fighter squadrons against a sanctioned strength of 42.5, the Tejas Mk1A induction has become an operational necessity for the IAF.

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