*Source: Defense Media
(NSI News Source Info) NEW DELHI - June 11, 2009: Russia has agreed to slightly decrease its selling price for the aircraft carrier Admiral Gorshkov, raising hopes that the Indian Navy will finally acquire the ship. 
Admiral Gorshkov has not been operational since 1988 but, in January 2004, India signed an agreement to buy the vessel which is to be extensively refurbished with new propulsion systems, weapons and modernisation of the deck for the new aircraft. The vessel is being sold for the price of the refit along with the purchase of 16 MiG-29K fighters and eight Ka-27 and Ka-31 naval helicopters for the carrier group. The vessel was formally handed over in March 2004. Gorshkov has been renamed INS Vikramaditya. The refit is scheduled to be completed in 2010 followe by sea trials and handover to the Indian Navy in 2012. It is expected to enter service with India in 2013.
The two sides have been at stalemate over the carrier after Moscow demanded an increase of more than $1.2 billion above the contracted amount of $800 million reached in 2005.
Indian Defence Ministry sources said the Russian decision to reduce the cost was reached during talks last month in Moscow between visiting Indian Defence Secretary Vijay Singh and senior Russian Defense Ministry officials.
Although the decrease is described as marginal, it will enable the Indian government to claim a face-saving compromise, Indian Defence Ministry sources said. A final decision will take place by next month, the sources added.
Indo-Russian defense ties have been on the decline for the past two years after Moscow demanded cost increases for contracted weaponry, including the Gorshkov.
A Russian diplomat said that Moscow is concentrating on rebuilding its own defense forces and is aiming at sales to Iran, and as such has reduced its emphasis on the Indian market.
Following the delay in the aircraft carrier, due in 2007-08, some Indian Navy planners have suggested scrapping the carrier and resorting to a fresh hunt overseas.
Admiral Gorshkov has not been operational since 1988 but, in January 2004, India signed an agreement to buy the vessel which is to be extensively refurbished with new propulsion systems, weapons and modernisation of the deck for the new aircraft. The vessel is being sold for the price of the refit along with the purchase of 16 MiG-29K fighters and eight Ka-27 and Ka-31 naval helicopters for the carrier group. The vessel was formally handed over in March 2004. Gorshkov has been renamed INS Vikramaditya. The refit is scheduled to be completed in 2010 followe by sea trials and handover to the Indian Navy in 2012. It is expected to enter service with India in 2013.
The two sides have been at stalemate over the carrier after Moscow demanded an increase of more than $1.2 billion above the contracted amount of $800 million reached in 2005.
Indian Defence Ministry sources said the Russian decision to reduce the cost was reached during talks last month in Moscow between visiting Indian Defence Secretary Vijay Singh and senior Russian Defense Ministry officials.
Although the decrease is described as marginal, it will enable the Indian government to claim a face-saving compromise, Indian Defence Ministry sources said. A final decision will take place by next month, the sources added.
Indo-Russian defense ties have been on the decline for the past two years after Moscow demanded cost increases for contracted weaponry, including the Gorshkov.
A Russian diplomat said that Moscow is concentrating on rebuilding its own defense forces and is aiming at sales to Iran, and as such has reduced its emphasis on the Indian market.
Following the delay in the aircraft carrier, due in 2007-08, some Indian Navy planners have suggested scrapping the carrier and resorting to a fresh hunt overseas. 
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