Maybe so, but government still gives them contracts without even competing. Like in the case of AK203 which did no extensive trialing in LEH, etc. The Russians wanted to originally partner with the Adanis for the program as well.
This is a bone to to the Russian industry and to keep OFB hands moving. Effectively the Russians will be in Indian small arms business for 20+ years. OFB will be overlooking the quality and construction of most of Indian soldiers arms. If somehow the new factory pulls this off, great, but they have a track record.
If India pulls this BS with FICV, FRCV, etc. This will be a sin. Especially after current events.
There is also a issue of putting most of the future jet programs under HAL. This is also a recipe for disaster.
I love the SP and Make India why has nothing come of it? Why cant the gov and users freeze concepts that arent even revolutionary, but contemporary things need to move faster. India has the industry to produce a credible military industry and the players want to move, ask Baba, but they keep running into road blocks.