Hindustan Aeronautics Ltd (HAL) share price will be in focus on Thursday following reports that the government is likely to sign a deal worth around $1 billion with US-based General Electric (GE) to supply 113 additional GE-404 engines for indigenous combat aircraft.
According to a report by ANI, defence PSU HAL has already signed a contract for 99 GE-404 engines with the American firm for the initial 83 LCA Tejas Mark 1A fighter jets ordered by the Indian Air Force. The additional 113 engines will cater to another 97 LCAs approved by the government earlier under a ₹62,000 crore procurement plan.
Defence officials quoted in the report said negotiations for the new order are nearly complete and the deal is expected to be finalised by September. Once concluded, it will secure HAL’s total requirement of 212 GE-404 engines in continuity, mitigating risks of supply delays.
Hindustan Aeronautics is scheduled to deliver the first batch of 83 LCAs by FY2030 and the subsequent 97 aircraft by FY2034. GE, on its part, is expected to supply around two engines per month to meet programme commitments.
GE-414 Engines Talks
HAL is also in advanced negotiations with GE for the purchase of GE-414 engines, with an estimated 80% transfer of technology. India requires about 200 GE-414 engines — 162 for the LCA Mark 2 programme and 10 for five AMCA prototypes, the ANI report said.
The GE-414 deal, pegged at around $1.5 billion, is likely to be signed in the coming months after prolonged negotiations. The programme is considered critical as the IAF prepares to phase out its ageing MiG-21 fleet in the weeks ahead.
HAL Share Price Performance
HAL share price has slipped 4% in the past month and declined 12% over three months. However, the PSU defence stock has seen a strong rally of 35% in the last six months and is up 5% year-to-date (YTD). Over the longer term, HAL share price remains a multibagger as the defence stock has surged 124% in the last two years and delivered an exceptional 645% return over five years.
On Tuesday, HAL share price ended 1.67% lower at ₹4,382.70 apiece on the BSE.
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