Mr Raju said the state-of-the-art facility in Nasik will not require any major investment to reconfigure it to produce the fifth generation fighter aircraft (FGFA).
He said there was much in common between the FGFA and the Sukhoi 30MKI jet as both had structural similarities and the plant was well equipped to produce the new generation stealth fighter for which India and Russia have been in negotiations for nearly a decade.
The facility at Nasik is set to fall idle after it delivers the last batch of 35 aircraft out of the total order of 222 to the Indian Air Force.
In 2007, India and Russia had inked an inter-governmental pact for the FGFA project but no concrete decision has yet been taken on it.
"I will not comment on the justification on expenditure on the project. But, as a country, if we are looking for fifth generation technology and if somebody has offered it to us, then definitely I would like to go for it regardless of the expenditure," Mr Raju said.
There is a view in the defence establishment that India should not go for the project considering the possible cost which has been roughly estimated at around $25 billion (around Rs 1.61 lakh crore).
In December 2010, India had agreed to pay $295 million (Rs 1,897 crore) towards the preliminary design of the fighter, which is called the 'Perspective Multi-role Fighter' in India.
However, the negotiations faced various hurdles in the subsequent years.
In February last year, India and Russia revived talks on the project after a clearance from then Defence Minister Manohar Parrikar.
Mr Raju said the Nasik plant may be converted to a maintenance facility for the Sukhoi fleet if the FGFA project does not take off. The delivery of the remaining Sukhoi jets is likely to be over by early 2020.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.