Ending speculation on the Russian aircraft carrier Admiral Gorshkov, Defence Minister A K Antony admitted here on Saturday that the deal has indeed run into rough weather.
“Yes, there are problems. We are trying to sort it out with the Russians through negotiations,” Antony said responding to queries after a defence function here.
The Rs 7,000 crore ($ 1.5 billion) deal was signed in January, 2004. The defence minister did not clarify the nature of the problem. However, naval sources told Deccan Herald that Moscow was demanding more than a 100 million dollars extra and one more year to complete the project.
The original delivery schedule was August 2008. Though New Delhi would not mind a delay of three to four months in acquiring the 44,000 ton carrier with 16 MiG-29K aircraft and Kamov helicopters on board, the navy is worried about reports that the delivery date may be extended.
Narrow time window
In case the current imbroglio persists for more than a year, it will lead to a narrow time window for the navy to induct INS Vikramaditya – the Indian name of the Kiev-class carrier. The existing carrier INS Virat will retire in 2012 and the navy requires almost a year to integrate the ship in the fleet after the delivery.
“We don’t have much option as almost 70 per cent of the contractual amount has been paid. We may not agree to the Russian demand of a 100 million entirely, but it is likely that some part of the Russian demand may be met,” said a navy officer.
Russia demands a review of the contract arguing that the rouble should be compared against the euro and not against the dollar as was done three years back.
The Russian officials have made it clear to New Delhi that they require more money because the valuation of rouble has gone down drastically in the international market.
The Indian overseeing team at Sevmash shipyard at Severodvinsk where the ship is being refitted has reported to the naval headquarters that even if the Russians start working on the project seriously now with additional manpower, the timeline can be met.
“Stick to contract”
Concerned about the developments, Mr Antony wrote to his Russian counterpart Anatoly Serdyukov recently requesting him to stick to the original contract.
The issue is likely to come up in a big way when he visits Mocsow in October for the seventh meeting of the Indo-Russian inter-governmental commission on military technical cooperation.
The defence minister’s visit will be a ground preparation tour for Prime Minister Manmohan Singh’s visit to Moscow in the winter.
Late delivery of the INS Vikramaditya would pose as a set back for the Indian navy’s plan of having two aircraft carriers guarding the two coasts, as the Indigenous Aircraft Carrier is also likely to slip off from its 2012 deadline, sources added.
