Early on, it was decided to equip prototype aircraft with the General Electric F404-GE-F2J3 afterburning turbofan engine while a program to develop a domestic powerplant led by the Gas Turbine Research Establishment (GTRE) was launched.
In 1998, after Indian nuclear tests, US sanctions blocked sales of the F404, leading to a greater emphasis on the domestic Kaveri.
In 2004, General Electric was awarded a US$105 million contract for 17 uprated F404-GE-IN20 engines to power the eight pre-production LSP aircraft and two naval prototypes; deliveries began in 2006.
In 2007, a follow-on order for 24 F404-IN20 engines to power the first operational Tejas squadron was issued.

Cost overruns and delays were encountered in the Kaveri's development.
In mid-2004, the Kaveri failed high-altitude tests in Russia, ruling out it powering the first production Tejas aircraft.
In February 2006, the ADA awarded a contract to French engine company Snecma for technical assistance on the Kaveri.
Using Snecma's new core, an uprated derivative of the Dassault Rafale's M88-2 engine, providing 83–85 kilonewtons (kN) of maximum thrust was being considered by DRDO.
The IAF objected that since Snecma already developed the core of the engine, the DRDO will not be participating in any joint development but merely providing Snecma with an 'Indian-made' stamp.
In November 2014, the DRDO was submitting documents to cancel development of Kaveri.

In 2008, it was announced that an in-production powerplant would have to be selected; this was required to be in the 95 to 100 kilonewton (kN) (21,000–23,000 lbf) range to execute combat manoeuvres with optimal weapons load.
After evaluation and acceptance of technical offers for both the Eurojet EJ200 and the General Electric F414, the commercial quotes were compared in detail and GE's F414 was declared as the lowest bidder.
The deal covered the purchase of 99 GE F414 engines, an initial batch will be supplied directly by GE and the remainder to be manufactured in India under a technology transfer arrangement.
According to the IAF, adopting the new powerplant required a three-to-four years of redesign work.
Early on, it was decided to equip prototype aircraft with the General Electric F404-GE-F2J3 afterburning turbofan engine while a program to develop a domestic powerplant led by the Gas Turbine Research Establishment (GTRE) was launched. In 1998, after Indian nuclear tests, US sanctions blocked sales of the F404, leading to a greater emphasis on the domestic Kaveri. In 2004, General Electric was awarded a US$105 million contract for 17 uprated F404-GE-IN20 engines to power the eight pre-production LSP aircraft and two naval prototypes; deliveries began in 2006. In 2007, a follow-on order for 24 F404-IN20 engines to power the first operational Tejas squadron was issued.
Cost overruns and delays were encountered in the Kaveri's development. In mid-2004, the Kaveri failed high-altitude tests in Russia, ruling out it powering the first production Tejas aircraft. In February 2006, the ADA awarded a contract to French engine company Snecma for technical assistance on the Kaveri. Using Snecma's new core, an uprated derivative of the Dassault Rafale's M88-2 engine, providing 83–85 kilonewtons (kN) of maximum thrust was being considered by DRDO. The IAF objected that since Snecma already developed the core of the engine, the DRDO will not be participating in any joint development but merely providing Snecma with an 'Indian-made' stamp. In November 2014, the DRDO was submitting documents to cancel development of Kaveri.
In 2008, it was announced that an in-production powerplant would have to be selected; this was required to be in the 95 to 100 kilonewton (kN) (21,000–23,000 lbf) range to execute combat manoeuvres with optimal weapons load. After evaluation and acceptance of technical offers for both the Eurojet EJ200 and the General Electric F414, the commercial quotes were compared in detail and GE's F414 was declared as the lowest bidder. The deal covered the purchase of 99 GE F414 engines, an initial batch will be supplied directly by GE and the remainder to be manufactured in India under a technology transfer arrangement. According to the IAF, adopting the new powerplant required a three-to-four years of redesign work.
HAL Tejas