03:05 PM EDT, 10/29/2024 (MT Newswires) -- GE Aerospace (GE) will incur penalties from the Indian government for delayed delivery of engines for the country's light-combat aircraft, Bloomberg reported Tuesday, citing an official with knowledge of the matter.

The F404 engines for the Indian Air Force's Tejas Light Combat Aircraft Mk1 series are now expected to be delivered by March 2025, having originally been scheduled to start in 2023, the report added.

This delay stems from a $716 million agreement made in 2021 between India's state-owned Hindustan Aeronautics and GE Aerospace for the supply of 99 F404 engines.

The holdup complicates Prime Minister Narendra Modi's plans to enhance domestic fighter jet production and decrease the country's dependence on foreign manufacturers, according to the news outlet.

GE Aerospace and Hindustan Aeronautics did not immediately respond to MT Newswires' requests for comment, while India's Defense Ministry could not be immediately reached.

GE Aerospace shares fell 0.6% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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