If the Tejas Mk1A fighter aircraft is not handed over to the Indian Air Force on time, the government company Hindustan Aeronautics Limited (HAL) may face a big blow. According to sources, the Defense Ministry is preparing to impose a financial penalty on HAL for the delay in delivery.
In fact, in the year 2021, the Defense Ministry had signed an agreement with HAL for the purchase of 83 Tejas Mk1A aircraft at a cost of Rs 45,696 crore. This includes 73 fighter jets and 10 trainer aircraft. According to the agreement, the delivery of these aircraft was to start from February 2024, but till now the Indian Air Force has not received a single operational Tejas Mk1A.
The company gave this answer
However, HAL says that the biggest reason for the delay is the non-delivery of F404-IN20 engines from American company General Electric (GE) on time. Under the $716 million agreement for 99 engines in 2021, only 6 engines have reached India so far. According to the information, HAL has completely prepared five Tejas Mk1A aircraft and nine other aircraft have also conducted flight tests, but the final GE engine is yet to be installed in them. Apart from this, about 20 airframes are standing ready in the factory and are just waiting for the engine.
Delay in engine supply beyond his control
Defense Minister Rajnath Singh has also raised this issue with American officials several times. At the same time, the Indian Air Force was to get about 8 Tejas Mk1A aircraft every year, but due to non-start of delivery, the modernization plan of the Air Force is being affected. However, HAL argues that the delay in engine supply is beyond its control, but as per the contract, the company is responsible for the final delivery. In such a situation, the Defense Ministry is now considering imposing a fine under the terms of the contract.
How is the stock?
Talking about HAL shares, on Monday its shares closed at Rs 4230 with a rise of about 0.32 per cent. The market cap of the company is Rs 2.83 lakh crore. Every year the company gives a dividend of about 1.18 percent as a gift to the investors. The 52-week high of the company’s shares is Rs 5147. Whereas its 52 weeks low label has been Rs 3479.
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