Good to see proper breakdown of the deal. Wish @SpokespersonMoD had themselves officially published the details so we would have been spared of the stupidity of dividing total deal cost by no of units to arrive at a wrong per unit cost. https://twitter.com/ajaishukla/status/1351005588638076930

Here is the break. Note the cost of MFG of the jet comes out at 315Cr or only about $42-43M. Thats quite cheap for a Fighter of this calibre. Significantly cheaper and better than Gripen C/D.

Those who took liberty in taking potshots at @HALHQBLR for "inflating" price, do note - the higher cost was on account of IAF's demand for local MFG of the engine with ToT for which GE asked steep price. So that part was dropped which led to major cost reduction.

Earlier it was

reported HAL was asked to reduce profit margin from 12% to 6%. *Assuming that was correct* this must account for about 1000-1200 Cr. Note than 12% isn't an unreasonable margin for an Aerospace OEM (many OEMs have much higher profits) but given HAL hasnt developed LCA with own

funds and that its majority GOI owned entity they can easily come to an understanding for lower margins with GOI not taking dividends later or something else.

HAL was similarly bashed for Rafale deal fiasco for asking 2.7x MFG cost overhead for local production by ill-informed

Commentators without realising that other ToT deals also had similar mutipliers. Su30MKI had 2.7x, AJT has 1.8x. Such Ill-informed comments are only misleading.

Also note, the original DAC approval in 2016 was for 48000Cr or so. The news about latest DAC approval in early 2020

was for 39000Cr came with explanation that PBL package is dropped to reduce upfront cost for IAF (not official but reported in media). Looking at this break up, that 8000Cr explains the difference. It probably was dropped and later added back. Again commenting without enough

info at hand doesn't add any value to the discourse. In fact it just goes on to muddy the water.

MoD is partly to be blamed for this. They could be more open in official communication rather than giving unofficial comments or leaking info after doubts are floated.

Also what about the GST on export of Tejas..? Is GST applicable on Export..? Any GST expert around..?