 "Tejas Mark-1A fighter aircraft takes flight from the Hindustan Aeronautics Facility in Bengaluru")
Despite concern over delays in the delivery of LCA Tejas Mk1A aircraft, Hindustan Aeronautics Ltd (HAL) is reportedly expected to receive a new order from the Indian Air Force (IAF) for an additional 97 jets of the same type.
According to a recent Financial Express report, the contract for additional LCA Tejas Mk1As, estimated to be worth Rs 67,000 crore, could be finalised by the end of the year. If awarded, this contract would be the second major order for the LCA Mk1As, following the Rs 48,000 crore contract for 83 jets signed in February 2021.
The LCA Mk1A, which is an advanced variant of the LCA Mk1 and made its maiden flight in March 2024, is a key element in the IAF's modernisation efforts.
However, this report comes amid growing concerns over the public sector aerospace and defence company's ability to meet delivery timelines for the LCA Mk1A jets already on order.
What's the update on LCA Mk1A's delivery to IAF?
According to a separate Financial Express report, the IAF has expressed dissatisfaction with the current pace of the LCA Mk1A programme. The first aircraft from the existing order was initially scheduled for delivery by March 31, 2024, but HAL has faced repeated delays, now projecting delivery for November 2024.
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These delays have reportedly raised concerns within the IAF about potential risks to its combat readiness, prompting officials to urge HAL to expedite the programme.
How has HAL prepared for delivering LCA Mk1A jets?
HAL has reportedly assured the IAF that it will deliver 16 LCA Mk1A jets during the financial year 2024-25 (FY25) and complete the delivery of all 83 by FY29.
HAL has also established a new production line in Nashik to meet the increased demand for the aircraft. This new facility is expected to boost production from the current 16 jets per year to 24.
Why is the LCA Mk1A facing delays?
Despite these efforts by HAL, challenges remain, particularly regarding the supply of F404 engines from US-based GE Aerospace.
The delivery of these engines, which will power the LCA Mk-1A jets, has been reportedly delayed by approximately 10 months due to supply chain issues.
According to a seperate Business Today report from last week, market analysts have also expressed some concern over delays in the delivery of the Tejas Mk1A jets. These analysts have also cited supply chain issues at GE Aerospace as the main reason for this. However, they remain optimistic about HAL's stock prospects despite these concerns.
According to the report, HAL's management expects the delivery of Tejas Mk1A jets to commence in the September quarter of FY25.
Citing a Nomura India report, the news report said that with regard to the delivery of the Tejas Mk1A aircraft, supply chain disruptions at GE Aerospace have caused delays in the delivery of the F404 engine.
The report said that while GE initially planned to deliver 16 engines annually starting in FY23, as of August 2024, none had been supplied.
This delay, according to the report, has postponed HAL's delivery of the LCA Mk1A.
As a result, Nomura India had previously reduced its LCA Mk1A delivery estimates from 14 to 10 jets in FY25.
Meanwhile, Elara Securities recently said that it had slightly reduced its estimate for the number of Tejas Mk1A deliveries in FY25 from 14 to 11.
Additionally, the certification of new systems for the LCA Mk1A is still reportedly pending, further complicating the aircraft's delivery schedule.
How can HAL fix LCA Tejas Mk1A delays?
In its Q1FY25 conference call, the management of Astra Microwave Products, a private Indian firm that builds sensor and defence electronics components, had highlighted that despite the delay in supply of GE F404 engines, there might not be significant delays in the delivery of the 83 Tejas Mk 1A jets by HAL.
According to Astra, HAL has an alternative engine replacement and could still meet the contractual timeline, albeit with minor delays for some aircraft in FY25.
What is the LCA Tejas Mk1A?
The LCA Mk1A will have updated avionics, an active electronically scanned array radar, and an updated electronic warfare suite. An even more advanced version, the LCA Tejas Mark-2, is also under development.
While the IAF has already inducted 35 of the 40 LCA Mk1s ordered earlier, the new Mk1A variant represents a significant advancement in the capabilities of India’s indigenous fighter aircraft programme.
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