All foreign deals where they are not involved have now become existential threats to HAL.
Coming to the point you made, HAL wants the IAF to issue an RFP for all 106 trainers, whereas IAF wants the order shared between HAL and Pilatus. So 68 HTT-40s and 38 PC-7 Mk IIs. This is also what the MoD had promised back in 2015.
HAL was supposed to have the aircraft certified by early 2018. But it's already a year gone and has still not finished certification. And the most optimistic date for finishing all tests is well after 2020, and a few more years for production and induction. The program officially started in 2012. Who the hell takes 10+ years to induct a trainer?
And it gets worse. Since Pilatus failed to get the order of 38, they have refused to extend the maintenance term on the same price, which led to MoD rejecting the new price. So now IAF is sourcing parts from the open market for the trainer, which is likely more expensive. So IAF today doesn't have the HTT-40, the 38 extra PC-7s as well as no active maintenance contract for the existing PC-7s.
HAL has successfully held the IAF hostage to their whims and fancies.
Well, the team for trainer project was formed in 2014, and MoD committed in 2016. HTT 40 is actually a pretty fast project. If we look at "Official" start dates, are you considering LCA's start date as 84? And yes absolutely operating two different trainers as pointed out by the IAF indeed is a logistical nightmare, Just that it doesn't apply to operate Mirage 2000, MKI, Mig29, LCA, (4 different 4th gen aircrafts) and then the Rafale and MMRCA (RFP) now.
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