“But HAL’s board, by way of abundant caution, has stipulated that the money should be paid once the IAF issues an RFP so that recovery is assured. That is why we want an RFP from the air force urgently,” said Madhavan.
An air force RFP is also required for HAL to start setting up a production line for HTT-40. Given a large number of trainers the IAF needs, Madhavan said HAL intends to deliver two HTT-40s the first year, then eight next year and, in the third year, stabilise at 10 per year.
In 2015, the MoD gave the green light for the procurement of 70 HTT-40 trainers. But HAL said order for 38 additional trainers would let development costs be recovered over a larger number of aircraft, lowering the price.