The estimated total cost of the project in 2008 amounted to $11 billion, to have been covered through equal investment by both of the parties, Business Standard said, adding that this figure had since risen to $12 billion because of inflation.
India’s Hindustan Aeronautics Ltd and Russia’s Sukhoi negotiators have since reached consensus on cutting the project costs to $8 billion, to be invested by India and Russia over the next seven years, the Indian newspaper specified.
The contract must still be considered and approved by the Defense Ministry's "cost negotiation committee" and Indian Defense Minister Manohar Parrikar, the news outlet added.
The FGFA project came about following a Russian-Indian cooperation agreement to develop and manufacture the multirole fighter, which was signed on October 18, 2007.
The Indian fighter jet will be based on the Russian single-seat Sukhoi T-50 or PAK-FA fifth-generation fighter.
