They will start construction of TD-1 and TD-2 by the middle of the year if the IAF accepts the design and the engine choice. I would keep my fingers crossed though. The IAF wouldn't want this program in a hurry because of Rafale and FGFA. It is possible the actual program may eventually start the next financial year.
Sorry, but that's a huge contradiction: on the one side You say that they have not even decided which engine would be used - I agree with that - and then You say they start building TD-1 and -2 this year.
So either this is simply wrong or if true another proof that there is something severely going wrong at HAL ... I would be surprised if they have already begun with detailed development work and final design review.
Maybe a mock-up will be build but surely not a real airframe.
Deino