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November 21, 2009
         
India to seal Gorshkov price in 3 months
Updated on Thursday, December 04, 2008, 00:00 IST
New Delhi, Dec 03: After a year-long war of words over escalating costs of Admiral Gorshkov aircraft carrier's repair and refit, India and Russia have agreed to complete their negotiations over a new price for the warship within three months.

India had bought the 44,500-tonne Russian aircraft carrier in March 2004 at a cost of USD 1.5 billion and sent it to the Russian Sevmash Shipyard for repair works after which it would be inducted into the Navy as INS Vikramaditya by 2012.

A decision in this regard was taken yesterday, first at the India-Russia High Level Monitoring Committee (HLMC) meeting co-chaired by Defence Secretary Vijay Singh and Russian Federal Service of Military Technical Cooperation (FSMTC) Director Mikhail Dmitriev.

Later that evening, the Cabinet Committee on Security (CCS) chaired by Prime Minister Manmohan Singh too gave its seal of approval to the agreement reached between the two sides at the HLMC meeting, Defence Ministry sources said here today.

Defence Minister A K Antony and his Russian counterpart Anatoly Serdyukov had during their Inter-Governmental Commission meeting in September this year agreed to finalise renegotiation schedule before President Dmitry Medvedev's state visit to New Delhi, beginning tomorrow.

The two Defence Ministers had also set up the HLMC and this was the first-ever meeting that it held since its constitution for coordinating and overseeing the functioning of the Joint Monitoring Committees for different projects that the two countries are partnering currently.

Over the last one year, Russians have been placing a demand for USD 2 billion additional cost over the USD 1.5 billion that New Delhi had already paid for the warship.

The earlier deal, signed in March 2004, also comprised of MiG-29K fighters and Kamov anti-submarine helicopters, the air element of the carrier.

While India had wanted to induct the warship, to be the largest in its inventory, in 2009, the delay in the works on the aircraft carrier had forced it to reschedule its induction by 2012.

Navy chief Admiral Sureesh Mehta had told reporters that India had reconciled to the delay in Gorshkov's delivery, but said there was some progress in the works on the warship in recent times.

The ship had been floated at the Russian shipyard already and the work on the ship's hull had been completed. Work relating to its cables and exteriors were pending, which would be completed before 2010, when the ship would be ready for trials, he said.

With the dispute over the pricing of Gorshkov likely to be over soon, India can hope to deploy an aircraft carrier each on both the eastern and western seaboards, as the existing INS Viraat would be available in service till 2015 after a midlife upgrade.

New Delhi would also be fortunate enough to have its indigenous aircraft carrier, currently under construction in Kochi, ready for induction by 2015 when INS Viraat would be decommissioned from service.

The CCS, at the meeting attended among others by Defence Minister A K Antony and Home Minister P Chidambaram, also gave nod to Indian Air Force (IAF) plans to purchase 80 Mi-17-IV helicopters. This proposal was earlier finalised at the two-day India-Russia HLMC meeting before it was sent to the CCS, sources said.

The IAF uses the Mi-17s for transporting troops and delivering supplies and equipment to soldiers posted in high altitude areas in Jammu and Kashmir, particularly at Siachen glacier and Ladakh.

As recently as November 29, the IAF has successfully used these helicopters for air-dropping commandos over the Nariman House in Mumbai for eliminating terrorists holding several innocent civilians hostage.

At the HLMC meeting, that ended here today, the two sides decided to boost their defence cooperation and discussed various issues related to the existing projects such as the multi-role transport aircraft, T-90 tanks, Airborne Early Warning and Control System (AWACS) for which Russia is providing Il-76 aircraft, and SU-30MKI air superiority fighter upgrade.

Various other Russian teams in the capital, ahead of their President's visit, would continue to hold talks with their Indian counterparts over the next two days on carrying forward defence projects such as the development of the hypersonic version of BrahMos cruise missile, co-development of a multi-role transport aircraft and the Fifth Generation Fighter Aircraft (FGFA), sources added.

Bureau Report


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