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New Delhi: Even though two major defence-related agreements including a 10-year deal on weapons, aircraft and maintenance contracts estimated at around $5 billion, are slated to be inked during Prime Minster Manmohan Singh’s upcoming visit to Russia, the long-awaited deal for aircraft carrier Admiral Gorshkov is unlikely to be finalised.
While senior navy officials claim that there have been positive developments in the negotiations that ended last week, defence minister AK Antony, responding to a query, said, “No, it is not going to be clinched during the visit early next month.”
“There have been positive developments in the sense that the Russians have agreed not to escalate the cost further and to justify the price quoted so far,” said a navy official requesting anonymity.
In November, a 40-member Russian delegation had arrived in India to discuss the price hike for refurbishment of the $ 2.2-bn aircraft carrier. The price negotiations for Gorshkov have gone on for long, with both sides refusing to budge from their stands. The total demand by the Russians now touches $2.9 billion, instead of $974 million, which was originally contracted. India has asked Russia to bring down the price to $2.1 billion.
However, the official said till the time a final price tag is fixed for the 45,000-tonne Kiev class aircraft carrier, work on the vessel would progress at the usual pace.
The Russian delegation has assured the Indian side that they will protect the work schedule, since a shift in the schedule may otherwise delay the refurbishment of the aircraft carrier, which will be inducted in the Indian Navy as INS Vikramaditya.
“That is the agreement between the two sides that the work on the aircraft carrier would not be stalled. The delivery date for the aircraft carrier, fixed at 2013-15, will be honoured. India so far has released around $ 650 million for the refit work,” the official added.
The issue the escalation in the price for the carrier had also been raised during the discussions with the Russian Deputy Prime Minister Sergei Sobyanin during his recent visit to New Delhi. “The issue came up for discussion with the visiting envoy, and he assured us that all the concerns raised by India on this matter will be addressed at the earliest,” said sources in the ministry of external affairs. An agreement between the two countries in 2004 stated that the old aircraft carrier was to be a...
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