The final cost after 18% GST for each Tejas Mk1A will be $52.5 Million Per Unit. Baseline Tejas Mk1A after Hindustan Aeronautics Limited (HAL) Profit margin of 6% is gonna be $44.5 Million Per Unit before GST. is issuing this clarification after it had posted two articles that had said it could cost per unit cost from $75-62 Million Per unit.

When the deal pegged at 45,696 Crore it created a lot of speculation and confusion due to lack of break of the figures to arrive at the per cost unit of the aircraft. Some of the Additional funds provided are for the development of Performance-based logistics, development of the supply chain for the program.

Additional Rs 1,202 crore have been provided to Indian Air Force (IAF) to create infrastructure development that will enable them to handle repairs or servicing at their base depot so that the turnaround time would get reduced for mission-critical systems and would lead to the increased availability of aircraft for operational exploitation. This would enable IAF to sustain the fleet more efficiently and effectively due to the availability of repair infrastructure at respective bases.

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