- Jul 3, 2022
Sir when do u expect ccs approval for mki upgrade and 97 more tejasOk. Let me make things more clear to you here. Lets say you are making biryani and buying potatos from me for that. You made a deal that over the period of 5 years, you would be purchasing 5000 kgs of potatos from me. So while signing the deal, would you sign the deal in todays price or would keep in mind the price inflation of next 5 years too?
Fund allocation for 83 Tejas was around 50,000 Crore. But in 2021 the deal was signed for ~37,000 crore. Delivery of those jets would begin from 2024. So while signing the deal, value of INR against USD was 74 rupees and today its 83 rupees. You have to keep this in mind as we would be paying USD for many subcomponents of those 83 jets today.
So, just understand that while giving DAC approval, you are earmarking the amount. The actual contract value would definitely change after negotiation which would start after CCS approval. Same is the case with MKI upgrade. These are long time process where you have to calculate for future instead of present.
@Satish Sharma, hope you got your reply too.