Browne also stated incorrectly that the Pilatus' cost would remain Rs 30 crore per aircraft till 2017. In fact, the next 38 trainers will cost Swiss Francs 6.09 million (Rs 39.3 crore today) each under the "options clause" of the contract. The cost of the following 68 aircrafts (adding up to 106 additional PC-7 Mark II) would be negotiated afresh and would almost certainly be higher, due to inflation.
The MoD ignored Browne's letter, being disinclined then to scupper an indigenous project. However, with the IAF blocking funding for the HTT-40, HAL was forced to commit Rs 180 crore of company funds in July 2013. In early 2014, that was upped to Rs 350 crore, with three prototypes to be built for accelerated flight-testing.
With the HTT-40 on track, and racing towards its first flight next year, two corruption allegations mysteriously popped up, stalling the project. Both alleged wrongdoing in HAL's selection of the Honeywell TPE 331-12B engine after an open tender, when the alternative supplier, Pratt & Whitney, refused to allow licensed manufacture in India. With the first flight looming, Honeywell agreed to provide a 'Category B' engine – a used engine with more than 80 per cent of its service life remaining.
The first complaint came in early November from the BJP MP from Jaunpur, Krishna Pratap Singh, who complained to the CVC about the engine selection and blamed HAL's design chief, T Suvarna Raju, who oversees the HTT-40 project. Investigation began and the MoD halted engine procurement.
Contacted by Business Standard, Krishna Pratap Singh claimed that he knew nothing about the HTT-40 or the issues involved. "About three to four months ago a sajjan (person of good character), who I don't remember now, came to me and said there was corruption. I only wrote that the matter be investigated, and any wrongdoing corrected," said Singh.
The second allegation came almost simultaneously from an NGO called Rashtriya Mukti Morcha. The RMM has neither expertise nor previous interest in aerospace. It has earlier filed petitions against Sonia Gandhi's right to hold constitutional office, and in the Jharkhand Mukti Morcha bribery case.
Contacted by Business Standard, RMM chief Ravindra Kumar acknowledges filing a complaint. He said details are in his files but he repeatedly denied requests to visit his office to ascertain the basis for his complaint.
CVC investigations into the complaints unearthed no wrongdoing; It is not unusual for 'Category B' engines to be chosen for prototypes, while buying new engines for the production aircraft. HAL had powered the intermediate jet trainer prototype with a 'Category B' Larzac engine, until new engines became available.
Even so, engine procurement was halted. Meanwhile the IAF repeatedly petitioned the MoD that Swiss trainers should be quickly bought since the HTT-40 would be late.
Meanwhile, the deputy chief of air staff (DCAS), who sits on HAL's board, steadfastly opposed funding for the HTT-40. When the board allocated Rs 180 crore in July 2013, the DCAS dissented in writing, something that the IAF now denies.
The IAF has sought to associate the PC-7 Mark II with the 'Make in India' drive by seeking to build it in India to blueprints provided by Pilatus. Yet that would essentially remain a foreign aircraft, with intellectual property, technology and licensing residing abroad. In contrast, a 'Make' category project like the HTT-40 would involve far more expansive indigenisation – including ground-up design and integration, test flying and certification and eventual manufacture.