JOIN USIndia on Monday signed close to Rs 25,000 crore worth military contract with its trusted defence supplier Russia but did not spell out whether penalty would be imposed on Russia for a year-long delay in the delivery of aircraft carrier INS Vikramaditya.
The two big-ticket military contracts are for the supply 71 MI-17V5 helicopters (59 for Indian Air Force and 12 for Border Security Force) and licensed production of 42 more Su-30MKI fighters at Hindustan Aeronautics Limited in Bangalore.
Moreover, the two sides inked a business contract for establishing an industrial manufacturing facility in India to produce Russian origin Mi and Kamov helicopters as well as their components. The new enterprise will be eligible for implementing various offset projects under procurement tenders. The Rs 16,000 crore deal for 42 more Su-30MKI will add to 230 SU-30 MKI already contracted, out of which close to 115 of these air dominance fighters have been produced by HAL.
New Delhi is unlikely to buy more Su-30 from the Russians as the emphasis is on to jointly develop fifth generation fighter aircraft and multi-role transport aircraft that was discussed between Prime Minister Manmohan Singh and Russian President Vladimir Putin.
According to a statement issued at the end of an hour-long meeting, both sides discussed measures required to ensure expeditious delivery of the aircraft carrier INS Vikramaditya to India. Russia assured requisite measures would be taken in this regard.
The delivery of the $ 2.33 billion aircraft carrier has been pushed back to last quarter of 2013 as against envisaged delivery schedule of December 2012. The delay happened because while carrying out flight trials in the White and Barents Sea, it was found that the main propulsion plant could not achieve full power due to defects encountered in the boiler section.
Rectification of the defect was likely to take six months, defence minister A K Antony informed the Rajya Sabha earlier this month.
A joint venture involving Elcom Systems Private Ltd and OAO Vertoleti Rassi (JSC Helicopters Russia) will involve establishing a manufacturing facility in India to produce hi-tech rotorcraft products, which will contribute to the development of domestic aerospace industry.