If HAL is refusing to assemble PC-7s, what choice do they have? They already have PC-7s, and a flight training program based on it, and they don't want two basic trainers. They can either purchase the product outright, or at least assemble it at home, thereby spending some of their budget in house, instead of sending every penny to Swiss workers.
IAF has been doing major overhauls for a long time, and there is good reason for that. That way they get to know the aircraft inside out, and will not need to send every aircraft to HAL every time. The whole enterprise gets streamlined if these fourth level work is done by the IAF itself. And having their ground crew gain that much expertise is also invaluable during wartime.
It is not a business oriented project, BTW. It is simply a way to retain some money inside the IAF (and India). They are already committed to purchasing PC-7s. If HAL does not do it, the only question is whether BRD workers should asemble it, or Swiss workers should, using Indian taxpayers' money.
I agree about IAF going the navy way in being involved in aircraft design with HAL and ADA. But this is a seperate issue, this is not about whether IAF should develop a trainer, or HAL should. If that was the question, I would want HAL to do it. This is about who should assemble an already purchased product, and the choice is Switzerland or BRDs. (Since HAL refuses.)
