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Indian Team to Visit Moscow to Finalize Admiral Gorshkov Pricing Issues

2009-01-04 In an effort to finalise the issues concerning Admiral Gorshkov, now called "INS Vikramaditya," New Delhi will shortly send a team of price negotiators to Moscow.

The aircraft carrier's purchase ran into rough weather after India signed the deal in 2004 at an originally contracted price of $1.5 billion for its refit and modernization. Delivery has been delayed from the scheduled year of 2008 and recent reports indicate that the Russians want an additional $2 billion. The delivery is now expected to take place in 2012.

Authoritative sources told The Hindu that the government had formed a team to visit Russia. This would be followed by another visit by senior officials to finalise the delivery time.

The previous National Democratic Alliance government conducted the negotiations and refurbishment of the 44,570-tonne Gorshkov ran into difficulties after it was discovered that its modernisation bill was underestimated.

While Russia removed the chief of the shipyard where Gorshkov is being refurbished, India resigned itself to re-negotiating the additional cost as it had made an advance payment and there was no comparable alternative.

To replace Viraat
Gorshkov is meant to replace India’s sole aging aircraft carrier INS Viraat. The likely delay of four years means the Navy will have to strain every sinew to keep it in working condition till the arrival of INS Vikramaditya.

Original negotiations dragged on for several years, with the Navy once expressing its apprehension that if INS Viraat is decommissioned and another carrier is not inducted, it will lose aircraft carrier handling skills.

Originally published on The Hindu

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