Wed Jan 22 09:50:00 IST 2025: ## HAL Stock Dips on Unconfirmed Report of GE Engine Deal Roadblock

**Mumbai, January 21** – Shares of Hindustan Aeronautics Limited (HAL) fell over three percent today following an unconfirmed report alleging a setback to its engine deal with General Electric (GE) for the Tejas Light Combat Aircraft (LCA). The report, originating from a defence news website, claimed a “roadblock” to the deal.

However, unnamed sources within HAL refuted the report to Moneycontrol, calling it “fake and unsubstantiated.” The news comes amid ongoing concerns about timely delivery of GE’s F-404 engines, issues that have previously led to delays in the LCA’s induction into the Indian Air Force. Past delays, attributed to supply chain disruptions at GE Aerospace, have already caused revisions to the LCA’s delivery schedule.

HAL aims to deliver 16 LCA Mk1A jets in 2025, with a total of 83 by 2029. The original delivery timeline, set for March 2024, has already been pushed back. To meet production targets, HAL has established a new facility in Nashik to increase annual production capacity to 24 jets.

Despite the recent stock dip, HAL shares are up 41% year-on-year, but down nearly 20% in the last six months. The company has a memorandum of understanding (MoU) with GE for technology transfer of the GE-414 engine, with HAL aiming to manufacture 80% of the engines domestically. Another MoU was signed in June 2023 for the ToT and manufacturing of the GE-414 engine for the LCA MK2 aircraft. The uncertainty surrounding engine supply continues to impact HAL’s stock performance.

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