The chairman of Hindustan Aeronautics Limited, R. Madhavan, has admitted that the dirt flung at the company during the political slugfest over Rafale has made everyone “feel bad”.

Addressing the customary news conference at the Aero India exhibition, Madhavan said: “Yes, we do feel bad when there are bad things said about us. But it has not affected us.”

He continued: “Our staff and middle management are more enthusiastic, and all this does not affect our business.”

The Centre had scrapped the UPA government’s Rafale deal for 126 aircraft, of which 108 were to be manufactured by HAL, and signed a fresh deal for 36 aircraft to be delivered in flyaway condition by France’s Dassault Aviation. The Opposition has alleged corruption in the new deal.

It didn’t matter that HAL has so far licence produced Russian Mig 21, Mig 27, Sukhoi 30-MKI, and British Jaguar, more than a hundred each,

This had led to a battle of words between Congress and BJP, and their allies.

While it is a fact that HAL had even signed a workshare agreement with Dassault and was on the verge of closing the deal when Reliance was picked for the offset.

Asked if HAL would still be interested in Rafale, Madhavan said the pact was now for aircraft in flyaway condition. “We are not interested in offsets. It was the government’s decision to take it as a direct purchase. If it is coming as a business (manufacturing) to us, we will be interested in it,” he said.

After a Mirage 2000 fighter jet upgraded at HAL Bangalore crashed during take-off, killing two IAF pilots, junior external affairs minister V.K. Singh said: “Parts of (HAL-made) aircraft fall off on runway.” The plane was one of 51 Mirages 2000 being upgraded by HAL.

Asked about allegations that higher man-hours at HAL had cost it the Rafale deal, as the government had suggested in the Supreme Court, Madhavan said one should not compare the first aircraft at HAL with the 100th at an original equipment manufacturer like Dassault.

“First of all, labour contract is a smaller fraction of the total cost. Major cost is material. Our labour cost is much, much lower than what they are talking about,” he said. “When you make the first aircraft, you take more time. The time reduces with the second one. By the 40th or 50th, what we call the learning curve, the man-hours reduce. If you see Sukhoi 30, our man-hours is less than the original equipment manufacturer. So you must compare our 50th aircraft with their 50th,” he said.