The deal is expected to help HAL to get its complete requirement of 212 GE-404 engines in continuity, avoiding any types of delays in engine supplies.
Godrej Aerospace is a tier-1 manufacturer of precision and hi-tech aerospace components, assemblies, and systems, executing global projects that serve the defence, space, and aviation sectors.
The HAL and GE from the US would be producing these engines jointly in a facility in India.
The defence ministry on Thursday accorded its approval to procure 30 MQ-9B Predator drones from the US to crank up the surveillance apparatus of the armed forces, especially along the frontier with China, people familiar with the development said.
The change of heart in the US and India was propelled by the increased threat of China to both countries, explains Ambassador T P Sreenivasan.
In a last-minute twist, General Electric of the US has bagged the hotly contested $800-million tender to supply 99 engines for India's Tejas light combat aircraft (LCA). After both engines in the contest -- GE's F-414 and Eurojet's EJ-200 -- were found technically suitable, the F-414 has been declared the cheaper option.
Defence Minister Manohar Parrikar says global aircraft makers will have to get approval from their own governments to transfer technology and build jets in India.