sancho
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As per the article, IAF is only interested in mk.2 version since it fulfills its requirements. What would be the fate of mk.1 in that scenario.
The article doesn't say that IAF is not interested in MK1 (which should be evident by the fact that the order was increased to 2 squads), just that the operational requirements demand more capability, which is what the MK2 is meant to offer. That's not surprising, since the MK1 specs were based on older requirements, while the IAF today demands propper 4.5th gen capabilities. If the MK1s will be upgraded later, or simply sold off and replaced by new upgraded versions, as IAF did it with the Su 30s, needs to be seen.