Few days back i read on this forum if i remember correct the Russians are just lying to Indians for its development and an Indian Wing commander involved in that project opened the Pandora box for a number of failures regarding its avionics, Radar development and other related mis adventures. They have just robbed Indians for their $500 million or so in R&D and nothing is coming out for sure, more over Russian Govt have taken hands off it and decided to limit the program, as it would not become like F-35 Dark whole project which Pentagon could afford only not Russia
Russians scaled down their order to just 12 aircraft's from initial 55. And its sorry 5 billion dollars not 500$ million Indians have lost in it.
Delays and cost increases[edit]
In May 2012, the Indian Ministry of Defence (MoD) announced a two-year delay in the project's development. The then Defence Minister A K Antony had said that the FGFA would join the Indian Air Force by 2017. However, his deputy, M M Pallam Raju, told the Parliament that the fifth generation aircraft is scheduled to be certified by 2019, following which the series production will start.
[29] Ashok Nayak, who spoke on the record as HAL's chairman before retiring, explained that the IAF have required 40-45 improvements made from the PAK-FA to meet Indian needs. These changes were then formally agreed upon between India and Russia.
[29]
There is apprehension that the FGFA would significantly exceed its current $6 billion budget, because this figure reflects the expenditure on just the basic aircraft. Crucial avionics systems would cost extra. The Russian and Indian air forces each plan to purchase about 250 FGFAs, at an estimated $100 million per fighter for an $25 billion total, in addition to the development costs.
[29] By October 2012, India had cut its total purchase size from 200 to 144 aircraft. India's initial investment had grown from $5 billion to $6 billion, and the estimated total programme cost had grown to $30 billion.
[30]
In 2013, it was revealed that the Russian and Indian fighters would be using the same avionics.
[31] Alexander Fomin said that "Both sides involved in this project are investing a lot into it, and on equal terms."
[32] Russia later admitted to huge delays and cost overruns in the project.
[33] The first prototype delivery has been delayed by one or two years. The contract has not be finalised, and the IAF has accused HAL of giving away up to half of India's share of the development work.
[34][35] India contributes 15 percent of the research and development work, but provides half the cost.
[36]
India has "raised questions about maintenance issues, the engine, stealth features, weapon carriage system, safety and reliability".
[37] After repeated delays in the fighter's design and workshare arrangements Indian Defence Minister
Manohar Parrikar said in January 2015, "We have decided to fast-track many of the issues."
[38] The HAL is to receive three Russian prototypes, one per year from 2015 to 2017 for evaluation.
[39]
On 9 March 2015, media outlets reported that the countries agreed to reduce the aircraft delivery time from 92 months to 36 months with the signing of the final agreement. India is also ready to forego a 50:50 work share to prevent further delays from absorption of a new technology; both countries agreed to manufacture the first batch of aircraft in Russia and for subsequent batches to be manufactured by HAL under transfer of technology.
[40][41][42]