India and Russia have restarted talks on the Fifth Generation Fighter Aircraft (FGFA) project after Moscow agreed to cut the price to $3.7 billion from 6 billion.
A report by PTI quoting high-level defence sources said that high level Russian delegation is in Delhi to hold negotiations on the FGFA as well as the Kamov 226T helicopter project.
"We have got the clearance to restart the talks. Accordingly, a Russian team is here and cost negotiations began yesterday," the agency report quoting sources said.
Earlier reports had said New Delhi had proposed that instead of commencing the detailed project report(DPR), India would pay for three prototypes and transfer of technology (TOT) instead of US$6 billion for the DPR and joint production.
It is not clear if India wants to use the prototypes and TOT to set up its own production line in India. The FGFA, also called T-50, is the most advanced aircraft to be built in Russia. It combines stealth technology with super-manoeuvrability enabling it to penetrate deep into enemy territory and conduct bombing as well as dogfight with enemy planes.
India has already invested $290 million into the project in the form of a preliminary study.