On Wednesday, the Ministry of Defence (MoD) announced the Union Cabinet’s clearance for Hindustan Aeronautics (HAL) to build 83 Tejas Mark 1A light combat aircraft (LCA) for Rs 45,696 crore. This raised concerns that the improved version of the current Tejas Mark 1 fighter would cost a daunting Rs 550 crore each.
However, senior government sources have clarified to Business Standard that each Tejas Mark 1A will cost no more than Rs 315 crore to build, with the total manufacturing cost adding up to Rs 26,145 crore.
The balance of the Cabinet clearance includes allocations for tax and for maintenance and