The MoD specifically stated that there's a chance for another bird. Boeing/F18 is still in this. IAF Chief evendramd similar lines. Mentioning it's more on the lines of industrial benefits. I wouldnt brush this under the carpet just yet.
Another fighter jet
The government had already stated that another fighter aircraft would be selected under the “Make in India” initiative to be manufactured in India with extensive technology transfer.
Mr. Raha said they had received “unsolicited” offers on F-16, F-18 and Gripen aircraft. “It is on the table, nothing is decided as yet,” he said.
Detailing on the idea of having another aircraft production line in India, Mr. Raha said that “it will not be license manufacture”. “It will be proper transfer of technology so that we have good share of the technology that is utilised in this aircraft and also India will become a hub for manufacturing as well as Maintenance, Repair and Overhaul (MRO).”
The MRO, he said, should become a hub for other aircraft in the region and also service “other Air Forces which operate the aircraft.”
http://www.thehindu.com/news/nation...cal-strikes-says-air-chief/article9184889.ece
6:20
This is a push from the current government for the MII, then really a IAF push.