NEW DELHI, April 3 -- Hindustan Aeronautics Limited (HAL) has imposed liquidated damages on GE Aerospace for delays in supplying F404-IN20 engines for the Tejas Mk-1A, its chairman and managing director DK Sunil said on Thursday. He added that the Indian Air Force's LCA Mk-1 fleet (the first Tejas variant), grounded for nearly two months, will be cleared for flying next week after a software snag in the fighter jet's brake system was fixed. A local modification committee has cleared the correction. The contract for 99 engines specifies liquidated damages for any supply delay, and that clause is being invoked every time an engine is delayed, he said. "It is being done in line with the contract." The US firm has so far delivered only six of the 99 engines ordered by HAL in 2021 for $716 million - the first engine was supplied in March 2025. GE Aerospace had attributed the delays to supply chain bottlenecks and said production was being ramped up to fulfil the Indian order. The engines are meant for 83 LCA Mk-1As ordered by the defence ministry for Rs.48,000 crore in 2021. HAL was to deliver the first aircraft in March 2024, but deliveries are yet to begin, with the programme hit by engine supply constraints and delays in key certifications. "GE has assured us it will deliver 20 more engines by the year-end. Twenty LCA Mk-1As are ready, including five with new engines. The IAF will review the programme in May. Deliveries will begin after we complete trials of the ASRAAM (advanced short-range air-to-air missile) in the required configuration and some radar software upgrades," Sunil said. GE has also indicated it will deliver more than 20 engines annually from 2027 onwards, while HAL has the capacity to build 24 LCA Mk-1As a year. India's defence exports reached an all-time high of Rs.38,424 crore in the financial year 2025-26, marking an increase of nearly 63% over the previous fiscal's Rs.23,622 crore, the defence ministry said on Thursday. "Defence public sector undertakings (DPSUs) and the private sector contributed 54.84% and 45.16% respectively. This accomplishment of the Indian defence industry is in line withPrime Minister Narendra Modi's vision to position India among the world's top defence exporters," the ministry said in a statement....