The contract was expected to be sealed this week, but has run into difficulties because Hindustan Aeronautics, BAE’s Indian partner, forgot to include some costs for tooling in the accounts, reports The Times.
The oversight could increase the cost by several million pounds for each of the 66 training aircraft on order, and jeopardise one of the longest running tenders in history.
The error is believed to have occurred because of delays in finalising the details and the retirement of key people involved in the negotiations.
The Times quotes Jeff Wilson, spokesman for the British High Commission in New Delhi, as saying: ‘We?re still hopeful these negotiations will be concluded soon.’
A spokesperson for BAE said the company was ‘still in negotiations and very positive’ about the deal.
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