India is finalising a domestically produced 120 kN jet engine program with international collaboration, aiming for full Indian IP and a roughly 10-12 year timeline, and exploring a joint French-India Indigenous engine project under a government-to-government deal.

defence secretary announced that emergency contracts not delivering within one year will be foreclosed to enforce accountability for delivery milestones.

The delivery rule covers all suppliers and countries, ensuring timely deliveries across emergency procurements initiated after the Ladakh standoff.

To restore operational reserves after earlier shocks, the government authorised armed forces to use up to 15 percent of their capital budgets for urgent ammunition and equipment purchases.

This policy will apply across all emergency procurements, reinforcing a deadline-driven approach to supplier performance.

New efforts include seeking clarity from Russia on delayed deliveries and pursuing broader defense collaboration to address outstanding contracts and timelines.

The overarching policy aims to speed up critical military procurements and curb delays witnessed during security stand-offs by applying universal accountability rules.

During a defence conclave, Singh highlighted delays in critical procurements—S-400 systems, GE engines for Tejas Mk 1A, and Israeli orders—attributing many delays to supply chain issues and over-promising by suppliers.

He noted that prior emergency procurements prompted tighter policy, with delays affecting both domestic and international suppliers, including S-400 deliveries, Israeli orders, and GE engines for the Tejas Mk1A.

The Ministry of Defence is boosting liquidated damages to deter delays and penalize contract breaches impacting delivery timelines.

As part of the delay-reduction push, higher LD costs may be imposed to ensure timely deliveries.

A co-development agreement with a major global engine maker for an indigenous 120 kN fighter jet engine is being pursued, with India retaining full IP and a 10-12 year horizon, pending top-level approval.

Singh refrained from commenting on individual procurement cases due to cabinet considerations, but emphasized obtaining clear timelines for pending deliveries with Russia and other partners.