BENGALURU — Hindustan Aeronautics Limited advanced its plan to manufacture GE Aerospace's F414 fighter engine domestically on Monday, moving toward a commercial proposal after confirming that outstanding technical issues had been resolved. The engines will power India's Tejas Mk2 combat aircraft.

HAL's chairman said last week that the technical obstacles delaying the deal with GE Aerospace were cleared and that a commercial proposal was expected within one to two months. The agreement covers licensed production of the F414 engine in India with a targeted technology transfer of roughly 80 percent, one of the highest ever offered for a military aero-engine.

The F414 programme forms part of a broader effort by India's Ministry of Defence to reduce dependence on imported propulsion systems, which have historically constrained the country's indigenous fighter jet ambitions. Delays in supplies of the earlier F404 engine from GE Aerospace had already pushed back deliveries of the Tejas Mk1A to the Indian Air Force.

HAL plans to establish the local F414 production line at the company's Bengaluru facilities, creating a domestic supply chain for critical hot-section components. GE Aerospace confirmed that the joint venture would build on its 2023 agreement signed during Prime Minister Narendra Modi's visit to Washington.

Defence analysts at the Institute for Defence Studies and Analyses say the deal, once finalised, could serve as a template for India's more ambitious plan to co-develop an engine for its fifth-generation Advanced Medium Combat Aircraft.