This article is classic case of misinformation. 2021 deal for GE404 itself was above 70 cr per engine. Now we want GE414, inflation has happened, Rupee has depreciated, we want local assembly, ToT, spares, maintenance, etc. How can cost per engine still be 70 cr. Which moron was expecting cost to be 70 cr?
AMCA engine deal hits roadblock over GE’s threefold price demand
NEW DELHI: Negotiations for the GE F414 engines powering India’s fifth-generation Advanced Medium Combat Aircraft (AMCA) have hit a wall, with the US aerospacewww.newindianexpress.com
Negotiations for the GE F414 engines powering India’s fifth-generation Advanced Medium Combat Aircraft (AMCA) have hit a wall, with the US aerospace giant seeking prices nearly three times higher than earlier estimates, putting both costs and timelines for the flagship fighter programme at risk.
Though technical negotiations have been virtually completed, commercial discussions have stalled over engine pricing, technology transfer and manufacturing arrangements.
Sources in the defence establishment said the F414 engine was initially estimated to cost around Rs 70-80 crore per unit. But GE has now quoted prices almost three times higher, emerging as the principal sticking point in the commercial negotiations.
The negotiations cover not only engine procurement but also technology transfer, licensed manufacturing, maintenance, repair and overhaul (MRO) facilities, spares, warranties, delivery schedules and future price-escalation mechanisms.
The issue assumes significance because the AMCA prototype programme alone requires 15 F414 engines for five flying prototypes, even before accounting for future requirements of the Tejas Mk-2 and Twin Engine Deck-Based Fighter (TEDBF) programmes.
Beyond the AMCA, the F414 is also slated to power the Tejas Mk-2 and TEDBF, taking India’s projected requirement for the engine to well over 200 units in the coming years.
“The company knows the programme is built around the F414 and that changing engines now would be extremely difficult. That gives GE significant leverage during commercial negotiations,” a source said.
Sources further said GE has sought around Rs 6,000 crore for setting up a dedicated F414 assembly and manufacturing line in India, which would cater to future requirements of the Tejas Mk-2, initial AMCA production batches and the TEDBF programme.
Indian negotiators are understood to have explored reducing the initial order quantity to ease the immediate financial burden, but discussions over pricing remain unresolved.
“Changing the engine at this stage is not like replacing a component. The F414 has already been factored into the design and development plans for the AMCA Mk-1 as well as the Tejas Mk-2. Any new engine would require fresh integration, software work, testing and certification,” a source said.
“The AMCA design itself has already been frozen. If another engine is eventually selected, it will have to be adapted to the aircraft’s existing configuration rather than the aircraft being redesigned around the engine,” the source added.
American contractors have perfected the art of price gouging, they don't even spare American forces. Why would they spare India who willingly put all their eggs in one basket.
Regardless, the article should be taken as fake news. It deliberately tries to spread misinformation by anchoring the price expectation to be around 70 cr, whereas it should be much higher than that.
So, the whole premise of the article is flawed. Thanks for the information. If f404 deal was nearly 70 cr per engine back in 2021. So, yeah it's stupid to assume f414 deal would be that in 2026. I think this is another case of cooking up news based upon limited information by media walas like you said.
₹200 Crore Per Engine: The Price Tag Stalling A Landmark India-US Defence Pact
The India-US GE F414 engine deal has hit a roadblock after steep price escalation pushed costs beyond ₹200 crore per engine. DRDO is now evaluating alternative engine options for the AMCA fighter programme., India News, Times Now
The ongoing bump in the forward movement of the deal has led to the Defence Research and Development Organisation’s (DRDO) Aeronautical Development Agency (ADA) actively scouting for alternate engine options for the Advanced Medium Combat Aircraft (AMCA) Mk1.
There are two separate negotiations by two Indian entities going on as requirements are different. While HAL is pursuing for Mk2, ADA has is aiming for its 5th Gen fighter AMCA. ADA is focusing on the procurement of engines for the AMCA prototypes only.
"सर्वदिशाभ्यः सर्वं दुर्भाग्यं मयि आगच्छतु"₹200 Crore Per Engine: The Price Tag Stalling A Landmark India-US Defence Pact
The India-US GE F414 engine deal has hit a roadblock after steep price escalation pushed costs beyond ₹200 crore per engine. DRDO is now evaluating alternative engine options for the AMCA fighter programme., India News, Times Nowwww.timesnownews.com
The ongoing bump in the forward movement of the deal has led to the Defence Research and Development Organisation’s (DRDO) Aeronautical Development Agency (ADA) actively scouting for alternate engine options for the Advanced Medium Combat Aircraft (AMCA) Mk1.
There are two separate negotiations by two Indian entities going on as requirements are different. While HAL is pursuing for Mk2, ADA has is aiming for its 5th Gen fighter AMCA. ADA is focusing on the procurement of engines for the AMCA prototypes only.
- Indian fighter programs
Lmao people are blaming IAF for this too. 
The quality of discourse have gone to gutters in the last few years within defence community thanks to fanboyism. There is very little interest among people to discuss a matter in a more nuanced manner without defaulting to institutional, organisational and political mudslinging. And then there is the constant labelling culture.
The quality of discourse have gone to gutters in the last few years within defence community thanks to fanboyism. There is very little interest among people to discuss a matter in a more nuanced manner without defaulting to institutional, organisational and political mudslinging. And then there is the constant labelling culture.
What I am saying is loss of not buying engines on time cost lot more than what we loose by overpaying...
Just bite the first bullet ..
Safran/ JV will also concluded thereafter..
Without the first step, others will also won't budge.
> We should stop expecting much from USA. 1 option is that we should check how much lower ToT% we would get at our expected price, get it for 1st batch of AMCA Mk1 & move on.
> Forget 4gen TEDBF, but AMCA TD can be flown perhaps with RD-33MK. It's like diff. b/w X-35 & F-35.
Meanwhile we've to improve our baseline capabilities in say 10 years.
> Since LCA, IAF+ADA+HAL guys strategy has been to make a TD air-frame which itself will be the final jet, with none to minimum physical skeleton modification. This causes delay in FF of a TD. Now since 25 years after LCA, no new combat jet's TD has flown.
> Engine certainly controls jet size, but this is not era of intentionally making a medium class jet with everything limited. We made mistakes by not using AL-31 or AL-41 or F100/F110 engines at least for TD.
> IM
we should get Iz-177 & inflate AMCA, the laziest thing we can do.
"Sticky harvesting"—that's the American pigs' usual way. The RD-33 is far superior to the GE414, and not just by a small margin. Had india chosen the RD-33 or the AL-31F early on, we wouldn't have run into all this trouble.₹200 Crore Per Engine: The Price Tag Stalling A Landmark India-US Defence Pact
The India-US GE F414 engine deal has hit a roadblock after steep price escalation pushed costs beyond ₹200 crore per engine. DRDO is now evaluating alternative engine options for the AMCA fighter programme., India News, Times Now
The ongoing bump in the forward movement of the deal has led to the Defence Research and Development Organisation’s (DRDO) Aeronautical Development Agency (ADA) actively scouting for alternate engine options for the Advanced Medium Combat Aircraft (AMCA) Mk1.
There are two separate negotiations by two Indian entities going on as requirements are different. While HAL is pursuing for Mk2, ADA has is aiming for its 5th Gen fighter AMCA. ADA is focusing on the procurement of engines for the AMCA prototypes only.