Actually it's not good news, if you take the whole report into context.
HAL wants to start FOC production, but can't unless IAF gives the final go ahead.
=> IAF can't give it, until ADA has not achieved the FOC and the issues wrt the trainers will be settled.
=> Now HAL is asking IAF for another compromise, to start the work with the hope, that FOC will be achieved "soon".
If HAL can't go on with the production, the rate can't be increased and the costs will not go down so easy either.
That's the same problem, that forced the MK1A compromise too, when HAL asked IAF to accept a slightly modernised MK1 to keep the production line going, until ADA can develop MK2.
The same cycle on and on.
Btw, another informative article by Anantha Krishnan!
As passionate as he is about Tejas, the first squadron or the people behind the development, he still is able to write great articles without the usual sensationalism. That's what journalists should do, inform the reader and not just sell an article.
What more IAF is adding now
