The Time of India article mixes sensationalism with serious news. Plus, the cost comparisons posted vis a vis MRCA earlier in this thread, are also incorrect as there is little point in comparing program R&D costs to per unit costs of aircraft and additional services.
Comparing R&D costs, French figures depict Rafale R&D costs to be ~7.2Billion euros, translating to 44,736 Crores. The JSF budgeted costs are for $50 Billion, now expected to be $55 Billion (
http://www.aviationweek.com/aw/generic/ ... F%20Delay0). Even taking half of these at $27.5B, considering the fact the JSF is stealthy, thats Rs 1,24,836 Crores.
With much of the money going locally for the LCA & contributions to other IAF programs (upgrades of Jaguar fighters, MiG-27 etc), the program has also paid back a lot of the development investment already.
The Tejas program is arguably one of the cheapest programs of its class run any place. The flip side is the trickle feed funding has caused delays earlier, but even there, taking advanced fighters like the EF, Rafale, the LCA's development timeline is comparable, considering the fact that India faced supplier sanctions & is still on track for an IOC/FOC. EF began as ECA (1979), went on to ACA (1982), launched in 1985, with the aircraft flying in 1994 but still in significant trials/ development in 2004 (e.g. three months of Cold Environmental Trials), with development to original standards still continuing with aircraft produced in Tranches 1, 2 with capabilities being added yet.
Another factor is that the LCA has a reasonable level (vis a vis contemporary fighters). Janes notes the IAF Mirage 2000 upgrade will be to Dash-5 standard, which is pretty much on par with the LCA MK1. Both field integrated EW, glass cockpit, modern mechanical scanned array radars, have modern pilot aids (helmet sights) and will likely have similar aerodynamic performance (edge to Mirage being in higher top speed, payload and range, being of a different weight class).
But LCA MK2 as envisaged, with AESA radar, and new armament will be superior to both Upgraded MiG-29 and Mirage 2000s, making it a very potent fighter. It is also interesting to see recent observations by PAF Chief, firmly committing (admitting) that the JF-17 will be reliant solely on Chinese avionics, taking away the possibility of parity in some avionics systems with LCA (with French radars and missiles having been a possibility). The JF-17 is already behind the LCA in basic technology and capability (FBW, advanced systems). All in all, the LCA will be a very useful system, and HAL should explore tying up with an Indian pvt manufacturer to export the aircraft after meeting local needs. Will develop industry and may also assist in marketing/support.