India Press Information Bureau, The Government concluded a contract during 1996 with Rosvoorouzhnie, a Russian enterprise, for the procurement of Su-30 aircraft. The cost of these aircraft was frozen in fixed US dollars in the contract. The aircraft were delivered at the contracted price.
In so far a T-90 tank is concerned, there had been no escalation in the cost. T-90 tanks have been procured at the cost initially contracted for.
As of now, the cost of indigenous Su-30 MKI aircraft is higher than the cost of imported Su-30 MKI aircraft. But, as the indigenous content would increase in the later phases, the average cost of indigenously manufactured Su-30 MKI aircraft is estimated to be less than the cost of the imported aircraft for the total Su-30 MKI licensing manufacturing programme.
This information was given by the Defence Minister Shri Pranab Mukherjee in a written reply to Shri Mahendra Mohan in Rajya Sabha today.
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