Russian SU-30 and indigenously manufactured SU-30MKI are not the same, hence, one to one comparison of cost may not be appropriate.
The higher cost of indigenously manufactured SU-30MKI is due to following factors:
-- Additional modifications are incorporated in the indigenous Su-30MKI to enhance the operational capability and to suit Indian Air Force (IAF) requirements.
-- Being a Transfer of Technology (ToT) programme, cost is involved towards payment of license fee to Russian side.
-- Owing to the low volume of production of Indian SU-30 MKI as compared to Russian SU-30, economies of scale come into play.
-- Import of raw materials and proprietary components from Russia involves dependency on Russian Original Equipment Manufacturers (OEMs) for the offered kit costs, which are not proportionate with the kit contents.
However, indigenous manufacturing has created advanced skill sets in the country, a step towards self-reliance and will result in lower Life Cycle Cost and reduced dependency on OEM on repair & maintenance and faster turn-around time and quick support to IAF bases.
Since the facilities are indigenously established, future production supplies are likely to be cheaper if new order for bulk production is placed on HAL.
The Contract for upgradation of 61 Jaguar Display, Attack, Range and Inertial Navigation-I (DARIN-I) aircraft to DARIN-III standard was signed with HAL in December 2009.
Contractual timelines for Initial Operational Clearance (IOC) and Final Operational Clearance (FOC) were December 2012 & June 2013 respectively. Contractual timelines for delivery of all the Series Upgrade aircraft was December 2017. IOC has been obtained in February 2017. FOC has not yet been achieved.
The delay in the project is due to following reasons:
-- Introduction of certain new requirements projected by IAF which required additional software design, implementation and flight trials efforts.
-- Delay in supply of certain Buyer-Furnished Equipments by IAF.
-- Upgradation of certain equipment like Smart Multi-Function Display sought by IAF.
The development of Mission Computer was taken up by HAL through its Joint Venture Company, HAL Edgewood Technologies Limited (HETL). After some initial delay, the development of Mission Computer has now been completed.
Regarding Smart Multi-Function Display (SMFD), as per the revised requirement of IAF, a suitable alternative has been identified by HAL. This SMFD has also attained certification.
The progress of Jaguar DARIN-III upgrade programme is regularly reviewed by Ministry of Defence through meetings with HAL & IAF.
This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri Hariom Singh Rathore in Lok Sabha today.