I don think IAF completely threw out Mark 2 program. What they may have done is instead of parallel development may have asked Navy Mark2 to be priortised first. A good way to look at progress of Mark 2 program would be to see the GE414 EPE or upgraded version contract with India. Presently i am not seeing any numbers there nor any big commitment announcement. Its a solid indicator of how Mark2 (Navy/IAF) is progressing.
You fails to understand, what I want to comprehend. First every thing is Hosh wag for Me. 99 F414 engine ordered for MK-2. Here check this link
India to get Ge’s F414-INS6 engines later this year for Tejas MKII
According to this link first batch of F-414 engine is likely to come in September this year.
F-404 engine production have been stopped and for the further order, you have to give the advance order, so that the production of F-404 could be started to fulfill the Indian order.
Is it so simple to first order 99 F414 engine, and then cancel such order, and then order 404 engine.
Parallel development is different things, e.g ADA could work on mk-2 version and then propose IAF for further development, but what is the IAF role in its development, Does IAF have issued any ASR for its MK-2 development, and have she alloted any funds for its development.
MK-2 is not only the engine upgradation, but also change in fuselarge, change in airframe design, and needs full set of testiing and certification. Also the modular design and better maintainace design aspect.
About money allocation i think IN is already properly invested and with priortization i guess its more judicious and efficient way of money usage. If IAF version is finally going to borrow the naval version better develop naval version first instead of parallel development, wasting of resources especially manpower and money.
MK-2 naval and MK-2 IAF are two different project, taken by two different teams, and navy have alloted its 1000 crore rs on its development. How ever how could you claim that IAF is waiting for Naval Tejas MK-2 to prerform, which will be having different design and different requirement all together. Also does Navy have make it clear that the Naval Tejas MK-2 will be used as the carrier fighter plane, or they just using LCA as the tech demonstrator, for its Naval AMCA in future, because they seems to be more interested in Mig 29K, and in future Naval Rafale or F-35C.
Ex navy people are properly sitting in shipyards management and are overseeing a major push for capability development and delivery for IN orders. HAL i am not sure can have all IAF or major IAF ex or present people on board as being a govt body, at best a nominee director can come in not major changes. A better way is to slowly increase private MIC. May be use a company like Tata or Mahindra Aerospace and give tejas blueprints and stat a production line in pvt sector. Thats perhaps the best way of making HAL feel that times are changing and your delivery of key benchmarks is the way forward.
Pvt companies like TATA and Mahindra Aerospace could manufacture Tejas efficiently, but they are the pvt entity and will only work better if they have the definate, and fixed order, after all they are meant to earn profit. Investing in market, which don't give them confidence that they will get the future orders on regular basis, why would they invest money on land, set up the industries, trained labours, and importing and setting up tools and equipment.