As of 2014 HAL had reached the maximum local component input as defined by the India-Russian agreement to license manufacture the SU-30 according to this article from 2014:Everything is evil, but sukhoi is the lesser evil since India can make most of it in its own territory.
No royalties need to be paid now to anyone, even russia.
Also, there's already existing infrastructure that allows to continue its build without any other overhead costs.
Atlast, because it is such a big brute, it has the capability of being highly upgradable and adaptable. Most of the indian weapon tests happen on this aircraft, be it brahmos, astra, guided bombs, other missiles etc.
So as you can see, approximately 23% of components are imported from Russia, even fact, they have to be imported. But these 23% components are high value components and they contribute towards 50% of the cost of the manufacture. Furthermore so much for praising Russian unconditional TOT. As you can see from the above, the engine composites and alloys are proprietary secrets that Russia will not part with.Through years of building the Su-30MKI, HAL Nashik has gradually mastered the expertise that makes it one of the world's most feared fighters. Says the chief of HAL's Nashik facility, S Subrahmanyan: "More 51 per cent of the Su-30MKI by value is currently made in India, a little more than the 49 per cent agreed with Russia in the contract signed in 2000 to build 140 fighters in India.
Of the 43,000 components that go into a Su-30MKI, 31,500 components - or 73 per cent - are now being built in India.
Further indigenisation is blocked since the Indo-Russian contract mandates that all raw material that goes into the Su-30MKI - including 5,800 titanium blocks and forgings, aluminium and steel plates, etc - must be sourced from Russia. The contract also stipulates that another 7,146 items like nuts, bolts, screws and rivets must be sourced from Russia.
HAL has also partially indigenised the Su-30MKI's giant AL-31FP engines, which are built in Koraput, Odisha. Fifty-three per cent of the engine by cost has been indigenised, with the remaining 47 per cent consisting of high-tech composites and special alloys - proprietary secrets that Russia will not part with. Even so, HAL builds 87.7 per cent of the engine's components in India.
HAL claims that it costs Rs 450 crores to manufacture the SU-30, about $65 million and 50% of that is imported components from Russia. It's a great deal for the Russians to supply designs that are now 25 years old for $30-$35 million per plane that HAL built.
However, the question is, does the plane really cost $65 million now and going forward. Given below is an excerpt from a GOI press release after Rajnath's Singh recent Russia visit and it relates to the purchase of the second hand Mig 29s and the 12 new build SU-30s:
So for these 12 SU-30s, the total cost is going to be $1.44 billion i.e. $120 million per SU-30. This is for a bare bones aircraft with no spares and no weapons. Heck, the cost of the bare bones Rafale without the India Specific Enhancements, weapons and cost to set up the base infrastructure is about $100 million.The Defence Acquisition Council (DAC) approved the procurement Thursday which includes the upgrade of 59 MiG-29 aircraft, a MoD release said.
“While the MIG 29 procurement and upgradation from Russia is estimated to cost ₹7,418 crores $992Mn), the Su-30 MKI will be procured from (HAL) Hindustan Aeronautics Limited at an estimated cost of ₹10,730 crore ($1.44Bn)," the release added.
HAL sources told Defenseworld.net that the additional Sukhoi Su-30MKI purchase will be assembled at HAL’s Nashik facility. Formal approvals from the government are awaited.
So India is now paying through it's nose for an aircraft whose technology was current as of 1996-98 when it's design was frozen. Bad deal IMO.