In mid-2002, ten Su-30MKI aircraft were finally delivered in completely-knocked down kits to Lohegaon AFS. These aircraft were formally inducted into the No.20 Squadron on 27 September 2002. Upgrades of the first 18 aircraft (eight Su-30MK-1 and 10 Su-30K) is to be conducted at one of HAL's facilities located across the country, expected to begin in 2003 and to be completed by 2004/05.

In October 2000, a MoU (Memorandum of Understanding) was signed confirming the license production of 140+ Su-30MKIs and in December 2000, the deal was sealed at Russia's Irkutsk aircraft plant, with full technology transfer. The first Su-30MKIs from Nasik are to be delivered from 2004, with the original plan of carrying production up to 2017-18. However in November 2002, it was decided that the delivery schedule would be completed within ten years - by 2014 - by increasing the annual rate of production from 10 to 14 aircraft annually. An estimated 920 AL-31FP turbofans are to be manufactured at HAL's Koraput Division, while the mainframe and other accessories are to be manufactured at HAL's Divisions in Lucknow and Hyderabad. Final integration of the aircraft and its test flight are to be carried out at HAL's Nasik Division.