NEW DELHI: Negotiations for the GE F414 engines powering India’s fifth-generation Advanced Medium Combat Aircraft (AMCA) have hit a wall, with the US aerospace giant seeking prices nearly three times higher than earlier estimates, putting both costs and timelines for the flagship fighter programme at risk.
Though technical negotiations have been virtually completed, commercial discussions have stalled over engine pricing, technology transfer and manufacturing arrangements.
Sources in the defence establishment said the F414 engine was initially estimated to cost around Rs 70-80 crore per unit. But GE has now quoted prices almost three times higher, emerging as the principal sticking point in the commercial negotiations.
The negotiations cover not only engine procurement but also technology transfer, licensed manufacturing, maintenance, repair and overhaul (MRO) facilities, spares, warranties, delivery schedules and future price-escalation mechanisms.
The issue assumes significance because the AMCA prototype programme alone requires 15 F414 engines for five flying prototypes, even before accounting for future requirements of the Tejas Mk-2 and Twin Engine Deck-Based Fighter (TEDBF) programmes.
Beyond the AMCA, the F414 is also slated to power the Tejas Mk-2 and TEDBF, taking India’s projected requirement for the engine to well over 200 units in the coming years.
“The company knows the programme is built around the F414 and that changing engines now would be extremely difficult. That gives GE significant leverage during commercial negotiations,” a source said.
Sources further said GE has sought around Rs 6,000 crore for setting up a dedicated F414 assembly and manufacturing line in India, which would cater to future requirements of the Tejas Mk-2, initial AMCA production batches and the TEDBF programme.
Indian negotiators are understood to have explored reducing the initial order quantity to ease the immediate financial burden, but discussions over pricing remain unresolved.
The standoff comes at a crucial juncture for the AMCA programme, which is central to the Indian Air Force’s long-term force modernisation plans.
Being developed by the Aeronautical Development Agency (ADA), the indigenous fifth-generation stealth fighter is expected to play a key role in addressing the IAF’s persistent squadron shortfall, with the force currently operating 29 fighter squadrons against a sanctioned strength of 42.5.
The AMCA is also seen as critical for reducing long-term dependence on imported combat aircraft and providing the IAF with an indigenous stealth capability.
Its importance has grown further amid reports that Pakistan is moving closer to inducting China’s J-35 stealth fighter, which could introduce fifth-generation combat aircraft into the region before the AMCA enters service.
The government has approved over Rs 15,000 crore for the AMCA prototype development phase, with plans to build five flying prototypes.
Under the Request for Proposal (RFP) issued last month, the selected industry partner is expected to achieve the aircraft’s maiden flight within 30 months of contract signing.
The five prototypes are expected to undertake around 1,800 test sorties over seven years to validate the fighter’s flight-control systems, stealth characteristics, sensors, radar, weapons integration and propulsion performance.
“Changing the engine at this stage is not like replacing a component. The F414 has already been factored into the design and development plans for the AMCA Mk-1 as well as the Tejas Mk-2. Any new engine would require fresh integration, software work, testing and certification,” a source said.
“The AMCA design itself has already been frozen. If another engine is eventually selected, it will have to be adapted to the aircraft’s existing configuration rather than the aircraft being redesigned around the engine,” the source added.
The F414 was selected for the AMCA Mk-1 because it is a proven engine already powering several frontline fighter aircraft.
Generating around 98 kN of thrust, the engine is seen as a critical component of India’s future combat aircraft plans.
The engine is also slated for the Tejas Mk-2 and TEDBF, with India and GE having agreed in 2023 to pursue its co-production in the country.
The AMCA Mk-2, meanwhile, is slated to be powered by a more powerful 110-120 kN class engine being developed through an international partnership.
France’s Safran and Britain’s Rolls-Royce have emerged as the leading contenders for the programme.
