This actually is the most logical and practical solution.
Price is a major concern for GoI and this can ensure we get the aircrafts cheaper than the initial offer price.
IAF will be unshackled from HAL, IAF don't have to carry HAL and HAL don't have to pretend its carrying IAF.
India can now Focus on the AMCA. You do not need to buy aircrafts for ToT
....... you can just pay money and get the necessary ToT where India is lagging.
Its not a Win-Win solution, its a lose-lose solution. That was the only way out.
HAL will now have to fight for survival and it will either have to perform or perish.
IAF will get the aircrafts MUCH faster and of good build quality that will help them reach the numbers quickly.
HAL and IAF can now also focus on PAK FA, this deal will make the Russians happy too.
This deal would not have been "Make in India". LCA and AMCA is the REAL MAKE IN INDIA. These programs will get a BIG boost. IAF will be more inclined to support these projects now.
Each of these points stand on its own merit, so I am certain this news is probably true.