Adm Gorshkov\INS Vikramaditya price negotiation enters penultimate round
29 Jan 2009
New Delhi: An Indian ministry of defence delegation, consisting of four officials, has left for Russia to conclude price negotiations for the refit programme of the INS Vikramaditya (Adm Gorshkov) aircraft carrier. These negotiations are meant to finalise the new costs of the controversial refit programme that has seen delivery of the 44,750 tonne-Kiev class carrier delayed inordinately.
The current round of negotiations is meant to clear the path for a final round of talks at the defence secretary level.
The visit follows a four-day meeting between officials of both sides in New Delhi last week.
India signed a deal for the acquisition and refit of the Admiral Gorshkov carrier in 2004 at contracted price of $1.5 billion. Cost escalations, with raw material costs shooting up and serious miscalculations by the Russian shipyard about the extent of the refit work required to be performed on the ship, has resulted in cost escalating by another $2 billion.
Delivery of the aircraft carrier was originally due in 2008. A revised schedule may see delivery being made sometime in 2012. According to Russian navy and shipyard sources it may take at least another year, and possibly up to 18 months, before the carrier can be made ready for sea trials.
Though the Gorshkov affair has been the cause of much bitterness between the countries, matters may now have been brought onto an even keel with the visit of Russian president Dmitry Medvedev to India last December. It was made clear in the course of the visit that negotiations would be fast-tracked and concluded in a span of three months.
A refurbished INS Vikramaditya (Adm Gorshkov) is due to replace India's sole serving aircraft carrier, INS Viraat, which is close to outliving its useful service life.
