Buddy, I like many of your posts but I can't agree to these views. You very well know that IAF contested the price offered by HAL and how it was going to be higher than Pilatus in the longrun. IAF was completely wrong. They ensured that the requirement becomes critical thru delays and than force a willing govt to import Pilatus. ACM Browne ensured just that. The Pilatus deal included options which were cancelled by BJP govt. The import of Pilatus is totally due to IAF. I myself do not have a very high opinion of HAL but we must give them their due where they rightly deserve it.
IAF has bought and imported aicraft in even IOC condition, Folland GNAT and M2K are two prime examples. HAL was correct to ask for the clearance to produce the aicraft in IOC condition. Even F-35 entered production after IOC only. HAL asked for it to reduce the time to induct the aircraft. HTT-40 was cleared for IOC after completion of spin test last year itself. The orders should have been placed then itself to avoid delays. After the IOC, the FOC required completion of certain number of aircraft hours only as this was supposed to be a non weaponised platform but HAL built in it the capability for even weapon carriage and firing which was not demanded by IAF and Pilatus does not have.
Your timelines are out. The go ahead for project was given by Late Parrikar in end 2015 and first prototype flew in 2016. Bulk orders allow for faster production and reduced costs. HAL has never ever got orders in bulk like imported stuff in its history. Even Marut aircraft suffered the same fate.