The issue is quite a bit more complicated than just Honeywell's engine pricing. The engines cost ard US$5M each + rolled in R&D cost lumpsum for 120 engines (for 60 Jags). The F125IN doesn't exist, it is a paper engine upgrade of the existing F124/125 family that Honeywell proposed as a customized solution for the IAF Jaguar. Hence once confirmed order is received, Honeywell will embark on an R&D and Certification program for which HAL was supposed to share the cost (as integrator) which is currently the point of contention as HAL is balking at that figure. (which is growing due to USD inflation and the inordinate delay since when the proposal was first floated)
There are many many other layers of intrigue and incompetence in this story which will require a very longer and frustrating post. As with all things HAL, the real story is an ugly and complicated image which cannot be judged on media articles alone.