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The political situation at the time was different. Actually, it is not. The contract includes cost of maintenance, spares, training, infrastructure and license production and upgradation. It is not just unit cost. If you include all of this for a cheap fighter like LCA, even LCA's cost is...

What's the point if MoD simply locks it up in a cupboard like they did with the Bofors guns.

That reason is included. The other reasons were: Delay of 6 years in integrating Israeli equipment on the MKI. Rising dollar rate compared to Rouble and very high inflation in Russia. It was the delay and rising prices that mainly lead to the appreciation. All this was before recession.

Dude. I am not saying otherwise. What I am saying is this is calculated based on current market dynamics of the time and scaled up as time passes until completion of the final price for the contract. Before a contract is signed, there are a number of estimates made and changed over time...

Of course not. The price negotiations happen in "real time." But, they start off from an estimate and keep building on that. Ah! But it always does. A delay always mean the seller can hike prices mid way. That's why the delay must never be from our side. It was not low either ways...

It takes atleast 2 to 3 years to decide upon a price and then sign the contract. The contract is signed based on current market price and the price appreciates every year from 2% to 6%. So, the longer we take to finish the project, the more we have to pay. The appreciation value is reached after...

The AIP system has been doubled from $400mill to $ 800mill for 3 submarines. I think.

From what I know. The figure of 18k Crores was worked out sometime in 2002-03 and the contract was inked for the same figure in 2005. The delivery should have begun by 2012. But, MDL had problems absorbing technology, afterall it is a govt owned company. (At the same time L&T was making the ATV...

Grow up. Its business. I would have done the same had I been France. Its our media who exaggerates every anti-Indian news in the world. Its plain business. We sign a deal a decade ago and then expect it remain at the same price. It's like buying a car 20 years ago and still expecting a...