By Trevor Hunnicutt, Krishan Kaushik and Rajesh Kumar Singh
WASHINGTON/NEW DELHI (Reuters) – The Biden administration is close to signing a deal that would allow General Electric Co to produce jet engines that power Indian military aircraft in that country, according to three people briefed on the decision.
A deal ending joint production of the engines is expected to be inked and announced when President Joe Biden hosts Indian Prime Minister Narendra Modi for an official state visit on June 22, the people said on condition of anonymity. anonymity because the decision has not been made. made public
The White House, which said in January it had received the request to jointly produce the engines in India, declined to comment. GE did not immediately respond to a request for comment.
Washington is working to deepen ties with the world’s largest democracy and sees deeper military and technological ties with the South Asian country as a key counterweight to China’s dominance in the region.
India, the world’s largest arms importer, depends on Russia for almost half of its military supplies, and over the decades has bought fighter jets, tanks, nuclear submarines and an aircraft carrier.
New Delhi has frustrated Washington by engaging in military exercises with Russia and increasing purchases of the country’s crude oil, a key source of funding for Moscow’s war in Ukraine.
India’s state-owned Hindustan Aeronautics Ltd (HAL) had previously said it planned to use the GE-made 414 engine in a second generation of light combat aircraft and was in talks about domestic production of those engines.
The deal is not finalized and also requires notification to the US Congress, according to two of the people briefed on the deal.
Washington maintains tight controls on what domestic military technology can be shared or sold to other countries.
A broader joint partnership between the United States and India announced earlier this year is designed to encourage companies from both countries to collaborate, particularly on military equipment and cutting-edge technology.
While GE has offered some technology transfer to HAL, which will produce the engines as a licensed manufacturer, India is pushing for more technology to be shared, according to one of the people with knowledge of the talks.
India is eager to get the know-how to make aircraft engines. Although it can manufacture fighter jets domestically, it does not have the capacity to produce engines to power them.
HAL is using a lighter GE engine for the 83 light combat aircraft it is building for the Indian Air Force. However, India intends to produce more than 350 fighter jets for its air force and navy over the next two decades, which could be powered by the GE 414.
(Reporting by Trevor Hunnicutt in Washington, Krishn Kaushik in New Delhi and Rajesh Kumar Singh in Chicago; Editing by Heather Timmons and Jamie Freed)
