$41 million is for the specific requirements IAF has made.
And they came down to $38 million for each when IAF degraded their requirements.IAF felt that $3 million wont bring them the cappuccino they need during a war with downgraded specifications.Hence the deal was ruled out.
French were purely stupid.Israel agreed to do the same job for $20 million a peace ,still IAF felt that the price is too much for an aircraft upgradation leaving airframe and engines intact.
If french might have managed to bring the price to $17-19 million as like MIG-29 upgradation, then IAF might have considered buying the UAE mirages and upgraded them aswell.
Eitherways,french are loosers and are after money.In the business you need to go after money,but at the same time gotta have to be reasonable.