What is the status of the Kaveri engine?

Saw this news brief on the avia.ok website. What exactly is the problem preventing it from entering batch production?

Thanks.
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Indian Fighters to be Equipped with Engines
Manufactured in Ufa
21.04.2004

JSC Ufa Engine Industrial Association (UMPO) won a tender and negotiated the contract with Indian government on 180 jet engines delivery. The contract values exceed $200 million. The engines will be installed in Tejas fighters of LCA project, designed by Indian engineers.
Indian GTX-35VS Kaveri engine was designed with Russian technological assistance and underwent tests in Russia. However GTRE company failed to develop its batch production. As a result, the first batch of Tejas fighters will be equipped with UMPO’s engines, costing $1.1 million each. UMPO delivers engines for SU-30MKI fighters being exported to India by Ircut company.
According to the contract the engine deliveries will start in 2005. UMPO representative clamed that it is the first step in further cooperation with India. In future UMPO’s engines may be manufactured in India under license.