The agreement, if it happens, will have a huge symbolic significance as a message to China about deepening defence and security cooperation between India and Japan, both victims of Chinese territorial aggression.
"We understand there are some consultations underwayin India over pricing. Pricing is determined by several factors. We are not doing this for economic gains but for our friendly relations with India and can look at reducing the price to the extent possible," added the official.
Known for its short takeoff capability, the aircraft was meant to be deployed in the Andaman Nicobar Islands.