New Delhi: It took several rounds of negotiations that made the defence PSU Hindustan Aeronautics Limited (HAL) bring down the price of 83 Tejas fighter aircraft for the Indian Air Force (IAF) to Rs 39,000 crore from the earlier Rs 56,500 crore which was a reduction by approximately Rs 17,000 crore.

According to a source, the procurements file will now be sent to the Cabinet Committee on Security (CCS) for the final stamp of approval that the deal has been finalised at Rs 39,000 crore, and indications are that the file could be cleared before March 31. After the contract is finalised, HAL could start the deliveries of Mark-1A jets in three years, according to a media report.

Tejas Mark-1A jets are likely to come with 43 upgrades over the Mark-1 jets. These upgrades are improving maintainability, AESA (active electronically scanned array) radar, air-to-air refueling, long range beyond visual range (BVR) missiles, and advanced electronic warfare aimed at jamming the enemy’s radars and missiles.

The Defence Acquisitions Council (DAC) first approved the induction of 83 Tejas fighter aircraft at a cost of Rs 49,797 crore in 2016. The HAL responded with a quotation of approximately Rs 56,500 crore and this allegedly led to prolonged negotiations over cost.