From HAL’s initial quote of Rs 463 crore ( $64.5), the Price for final contract price has now fallen to Rs 310 crore ( $43.6 ). In September media reports had hinted that 417 crores ($58.1) per unit cost in fly-away condition minus its weapons system was agreed upon but as per the latest report by Business Standard, price agreed is Rs 310 crore ( $43.6 ) which is good 32% cheaper then what was quoted by HAL before price negotiation committee was formed.

In comparison to its competitor in the segment, AESA equipped Tejas Mk-1A is still cheaper than Gripen C which costs $63.4 million per unit without AESA Fire control Radar which is only offered on its Gripen E Model which has per unit cost of $85 million. The current deal includes 73 Single Seater Tejas Mk-1A and 10 Tejas Mk1 Trainer. IAF already has placed orders for 8 Tejas Mk1 Trainers in first order for 40 jets which will be manufactured along with 10 more Trainer ordered by IAF first before Tejas Mk1A delivery starts in 2023.

A deal for 83 Tejas Mk1A is likely to be concluded for 26,000 crores will also include 3 simulator costs and additional infrastructure cost which was required to set up an additional production line which also includes investment cost of research and development of upgraded Tejas Mk1A fighter aircraft.

According to HAL, if a deal is signed by early 2020 then deliveries of first Tejas Mk1A aircraft to the Indian Air Force will start from 2023 onwards and first and first Mk1A configured aircraft will make its first flight in 2022.

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