83 LCAs Order: HAL May Finally Agree to Lower Price

Staring at a depleting order book, defence PUS Hindustan Aeronautics Limited (HAL) — negotiating price for the 83 Light Combat Aircraft (LCA) Tejas aircraft order — is likely to agree to a price that is significantly lower than its quotation. According to sources privy to the negotiations, HAL quoted Rs 450 crore per aircraft as the basic price. “MoD and IAF (customers) are firm that this price is not competitive and are negotiating for a price that is less than Rs 300 crore per aircraft. Negotiations are nearly complete and final price is likely to be in the range of Rs 250 crore and Rs 275 crore,” a source said.Read More…