Showing posts with label Admiral Gorshkov Aircraft Carrier. Show all posts
Showing posts with label Admiral Gorshkov Aircraft Carrier. Show all posts

Thursday, June 03, 2010

DTN News: Indian Navy, Go For Gorshkov

DTN News: Indian Navy, Go For Gorshkov
Source: Strategy Page
(NSI News Source Info) TORONTO, Canada - June 4, 2010: An Indian inspection team has concluded that Russian efforts to refurbish the carrier Admiral Gorshkov, for Indian service, is on schedule. Nearly all the structural work is completed, and all the major mechanical items are installed. About half the cable (electrical and other conduits) work is complete. The Indian inspectors concluded that the ship should be ready for harbor trails by early next year. After that, the completed ship would be handed over to India in late 2012. Earlier this year, after five years of confusion, accusations, stonewalling and renegotiation, India agreed to pay Russia an additional $1.3 billion to have the Gorshkov refurbished to Indian specifications. The original deal was the for getting it done for about a billion dollars. But once the Russians got to work, things got complicated, and out of control, Indian naval officers have admitted that they were partially to blame for the Gorshkov fiasco. The Indians admit that, when they signed the deal in 2004, they had not had engineers go over the Gorshkov, and agreed, after a cursory inspection, that many electrical and mechanical components, buried within the ship's hull, were serviceable. It turned out that many of those components were not good-to-go, especially the cabling, and had to be replaced, at great expense. Shortly after the contract was signed, the Russians discovered that the shipyard had misplaced the blueprints for the Gorshkov, and things went downhill from there. After four years of haggling over Russian demands for more money, India agreed to pay about a billion dollars more, instead of the original (2004) agreed on one billion dollars, for a Russian shipyard to refurbish an old, damaged, aircraft carrier (the Admiral Gorshkov) for Indian use. Last year, Russia threatened to give the Gorshkov back to the Russian Navy if the Indians didn't, come up with even more money. The 44,000 ton Gorshkov was supposed to have been delivered last year, and renamed the INS Vikramaditya. But now delivery has been delayed until 2012. The Russians admitted that this project suffered from inept planning, shoddy workmanship, and poor management, and they wanted India to pay for most of those mistakes. The Indians were not amused, and played hard ball, making much of the fact that India was now the biggest customer for Russian military exports. Russia was also aware that India was increasingly turning to more expensive (and more capable) Western arms suppliers. Building a Gorshkov type carrier today would cost about $4 billion, and take eight years. India even looked into buying one of the new, 65,000 ton, British Queen Elizabeth class carriers (for about $6 billion). The Russians were willing to admit to mistakes and put things right, for a price. It took over a year of negotiations to determine what a mutually agreeable price would be. Meanwhile, the boss of Sevmash naval shipyard, when the Gorshkov deal was negotiated, was fired and under criminal investigation, on suspicion of financial mismanagement. Back in 2005, the Indians were not happy with all this, and at first insisted that the Russian government (which owns many of the entities involved) make good on the original deal. India sent its own team of technical experts to Russia, and their report apparently confirmed what the Russians reported, about shipyard officials low-balling the cost of the work needed. This is a common tactic for firms building weapons for their own country. It gets more complicated when you try to pull that sort of thing on a foreign customer. The Russian government initially offered to cover some of the overrun cost. But then they insisted that India cover most of it, or lose the ship entirely. Nothing was said about whether or not the Indians would get any of their money refunded. As Indian anger rose, the Russians began to realize that they would have to eat most of the additional mistakes, or risk losing billions in future sales. There was also a battle within the Indian government, between factions that wanted to dump the deal and cut back on buying Russian weapons, and other factions that wanted to maintain the long ties with Russia, even if it cost India more money. The Admiral Gorshkov entered service in 1987, but was inactivated in 1996 because it was too expensive to operate on a post Cold War budget. This attracted the attention of India, which was looking for a way to expand their carrier aviation capabilities. India is currently building another carrier, from scratch, but that 40,000 ton vessel won't be ready until 2015. India's sole current aircraft carrier, the 29,000 ton INS Viraat, just emerged from 18 months in a shipyard getting maintenance and upgrades. This work on the Viraat would have been avoided by the timely arrival (last year) of the refurbished Russian carrier. If that had happened, the INS Viraat would have been retired in 2012, after 53 years service (for Britain and India). But now the INS Viraat, with its engine and hull refurbished, and its electronics upgraded, will probably serve for another decade. Thus by 2015, India will have two large carriers in operation, and some bitter memories of their experience with the Russians over the Gorshkov.
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com
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Various Topics On Strategy Page

Friday, March 12, 2010

DTN News: India Signs Weapons Deals Worth $4 Billion With Russia

DTN News: India Signs Weapons Deals Worth $4 Billion With Russia
Source: DTN News / Int'l Media By Rahul Bedi (NSI News Source Info) NEW DELHI, India - March 12, 2010: The Indian government has approved a clutch of agreements with Russia for military hardware estimated at more than US$4 billion (€2.9 billion) ahead of prime minister Vladimir Putin’s day-long visit to New Delhi today, spawning a possible arms race in a highly volatile region. The cabinet committee on security (CCS) headed by prime minister Manmohan Singh confirmed the long negotiated and highly contentious $2.34 billion deal to refurbish Admiral Gorshkov, the 44,500-tonne second-hand aircraft carrier which the Indian navy acquired in 2004 for the price of its refit. Russia had originally agreed to retrofit the 23-year-old decrepit carrier crippled by a fire in 1994 for $975 million, but the eventual cost of resurrecting it had almost tripled, resulting in bitter acrimony with Moscow, the largest supplier of assorted weaponry to India for more than four decades. The carrier is now likely to be delivered in 2013, almost four years behind schedule, because of the price wrangle. The CCS also agreed the $1.2 billion purchase of 29 additional MiG 29K maritime fighters that would form part of the air arm of an aircraft carrier under local construction at Kochi in southern India. Military officials said India would also sign an agreement to acquire 40 additional Su-30MKI multi-role fighters to augment depleting force levels in the airforce, as Soviet-era MiG variant combat aircraft were retired. By 2017 the Indian airforce plans on operating some 280 Su 30MKIs, of which some 150 were being constructed locally under licence. Mr Putin’s visit will also set the stage for the induction of the Nerpa Akula-II nuclear-powered submarine into the Indian navy later this year under a 10-year lease for an estimated $700 million. India would then become the world’s sixth nation, after the five nuclear-weapon states of Britain, China, France, Russia and the US, to operate a nuclear-powered submarine. The Russian prime minister is also expected to sign agreements on the joint development of a fifth generation stealth fighter and a multi-role military transport aircraft, costs for which will be shared equally between Moscow and Delhi. India and Russia have agreed to extend their strategic and military partnership by another decade to 2020. This includes the supply of material and maintenance contracts worth some $10 billion to Moscow, which remains India’s largest material supplier. Mr Singh, meanwhile, is also likely to ask Mr Putin for access to nuclear reprocessing technology for civilian use. Russia is currently constructing two 1,000MW light water plants in India’s southern Tamil Nadu state, with four more proposed, but that number is likely to increase exponentially. In December 2009 Russia signed an agreement with India to expand civil nuclear co-operation that was free from all restrictions, guaranteeing against any future curbs or events.

Saturday, February 20, 2010

DTN News: Indian Navy Inducts Its Most Modern Fighters

DTN News: Indian Navy Inducts Its Most Modern Fighters *Source: DTN News / Int'l Media (NSI News Source Info) DABOLIM (GOA), India - February 20, 2010: The Navy inducted its most modern fighter — the MiG-29 K — at a ceremony here on Friday but the fighting machines will remain landlocked for the next three years due to the massive delay in the Gorshkov aircraft carrier that was to arrive from Russia in 2008. While six of the modern fighters — which the Navy says with some justification are even more advanced than the IAF’s Su-30 MKI — have arrived in Goa and have been inducted into the Black Panthers squadron, they will remain confined to shore-based operations and training programme till 2013-14 when the aircraft carrier is finally expected to arrive. The aircraft were inducted at a ceremony at the Hansa airbase by Defence Minister A K Antony in the presence of Navy Chief Admiral Nirmal Verma.
The sophisticated Russian-made MiG-29K maritime fighter aircraft, which will be based on under-construction aircraft carrier Admiral Gorshkov, were on Friday formally inducted into the Navy by Defence Minister AK Antony. Four MiG 29Ks of the 'Black Panthers' squadron were inducted at a ceremony that was also attended by Navy chiefAdmiral Nirmal Verma. India had placed orders for 16 MiG-29K in 2004 along with Admiral Gorshkov aircraft carrier from Russia, four of which landed in India on December 4 last year. "After induction, the fighter jets would be operated for around two years from the under-development shore-basedtesting facility (SBTF) at INS Hansa till the actual delivery of Gorshkov, rechristened as INS Vikramaditya, slated for2012," a senior naval officer said. He said pilots will have to undergo training at the Intensive Flying and Testing Unit and a syllabus has beenevolved for all future pilots, who would fly the aircraft. For operating the fleet of MiG 29Ks, India had sent 10 pilots for training to Russia and also to the US for decklanding training and on board a French aircraft carrier for operations training, he said. India has only one aircraft carrier INS Virat but the MiG 29Ks can't be operated from it as they are too big to take off or land at the around 28,000-tonne warship. While the Navy is trying to make the most of the aircraft and is even setting up a land-based training facility — complete with aircraft carrier style ski jump and arrestor wires — at the Hansa airbase, the fact remains that the fighters will spend one tenth of their flying life — they have a shelf life of 30 years — flying only from land.

Wednesday, February 17, 2010

DTN News: Indian Navy Aircraft Carrier INS Vikramaditya Or Admiral Gorshkov Price Agreed At $2.34 Billion

DTN News: Indian Navy Aircraft Carrier INS Vikramaditya Or Admiral Gorshkov Price Agreed At $2.34 Billion *Source: DTN News / Int'l Media (NSI News Source Info) NEW DELHI, India - February 18, 2010: Six years after the first agreement and the price escalation and hard talks that followed, the Defence Ministry is all set to seek the approval of the Cabinet Committee on Security (CCS) for acquisition of the aircraft carrier Admiral Gorshkov from Russia at a final cost of $2.34 billion — in January 2004, India first agreed to acquire Gorshkov at the refit cost of $974 million. Once cleared by the CCS, the Gorshkov deal will be signed during the visit of Russian PM Vladimir Putin on March 13. “The Gorshkov deal is in the final stages and the agreement will be signed as soon as the CCS gives a green signal to the proposal,” a senior official told The Indian Express. The 44,500-tonne carrier, which was to be initially delivered in 2008, will reach Indian waters in 2013-14 after its total overhaul, upgradation, weapon integration and sea trials.

Wednesday, December 23, 2009

DTN News: India To Pay $2.3 Billion For Admiral Gorshkov Renamed INS Vikramaditya

DTN News: India To Pay $2.3 Billion For Admiral Gorshkov Renamed INS Vikramaditya *Source: DTN News / Defense Media (NSI News Source Info) NEW DELHI, India - December 23, 2009: Russia and India agreed in final cost of overhaul and upgrade of aircraft carrying cruiser Admiral Gorshkov which will be renamed into Vikramaditya while in Indian Navy, informs IANS. According to agreement, total cost of works will make $2.3 bln, including $722 mln already paid by India. According to IANS, Russia evaluated total cost of modernization as $2.9 bln; however, in the course of talks it was decided to reduce price down to $2.4 bln and then – to $2.3 bln. Along with price reduction Russian party agreed to install additional equipment without extra pay. Under the agreement reached, India will not lay a claim and penalty provisions upon Russia in connection with displacement of ship delivery date to 2012; it was initially planned that Indian Navy would receive Admiral Gorshkov in 2008. It was reported on Dec 7, 2009 that Russia and India had agreed in terms and cost of the carrier's modernization. The agreement was reached during visit of Manmohan Singh, Indian Prime Minister to Russia. The contract on modernization and delivery of Admiral Gorshkov to Indian Navy was signed in 2004, eight years after the carrier was decommissioned. According to preliminary transaction terms, total cost of cruiser refitting would be $1.5 bln. The half was planned for procurement of deck-based fighters MiG-29K/KUB. Transaction of Admiral Gorshkov is considered unprofitable both in Russia and in India. In particular, Indian authorities consider construction of domestic carrier would be cheaper and its lifetime would be twice longer. In February 2009 India launched construction of its first aircraft carrier which is to be delivered to the Navy in 2014. Late November 2009 Indian Navy issued tender for an air group for new Indian carrier. Indian authorities intend to purchase one more parcel of 29 MiG-29K deck-based fighters from Russia. Until India gets modernized Admiral Gorshkov, delivered fighters will be attached to naval base at Goa.

Thursday, December 10, 2009

DTN News: Russia's MIG Company Confirms Delivery Of Naval Fighters To India

DTN News: Russia's MIG Company Confirms Delivery Of Naval Fighters To India *Source: DTN News / RIA Novosti (NSI News Source Info) MOSCOW, Russia - December 10, 2009: Russia's MiG aircraft maker said on Tuesday it has delivered the first four MiG-29 Fulcrum-D carrier-based fighter jets to India. Russia and India signed a contract on January 20, 2004, stipulating the supply of 12 single-seat MiG-29Ks and four two-seat MiG-29KUBs to India as part of a $1.5 billion deal to deliver the Admiral Gorshkov aircraft carrier, currently being retrofitted in Russia for the Indian navy. Indian media earlier reported that two MiG-29K and two MiG-29KUB fighters arrived from Russia in a knocked down condition on December 4. Deliveries of the remaining aircraft will be carried out in line with a schedule agreed by MiG and the Indian Navy. (The first two MiG-29Ks and two MiG-29KUBs already tested on the carrier were officially transferred to India earlier.) The contract for the jets also stipulates the procurement of hardware for pilot training and aircraft maintenance, including flight simulators and interactive ground and sea-based training systems. India and Russia are also reportedly close to reaching an agreement to break the deadlock on additional financing for the retrofit of the Admiral Gorshkov, which caused "a distinct chill in expansive Indo-Russian defense ties." "India is likely to shell out around $2.5 billion and get the carrier by early 2013,'' Times of India quoted a source in the Indian military as saying. The Indian Navy has named its MiG-29K squadron the "Black Panthers." The fighters will be based at an airfield in the state of Goa on India's west coast until the Admiral Gorshkov joins the Navy under the name of INS Vikramaditya.

Wednesday, September 09, 2009

DTN News: Indian Navy To Induct MiG-29 Ks By October, 2009

DTN News: Indian Navy To Induct MiG-29 Ks By October, 2009 *Source: DTN News / Int'l Media (NSI News Source Info) NEW DELHI, India - September 9, 2009: The first four ship-borne Russian-made Mig-29 K/KUB fighter jets, purchased for the aircraft carrier Admiral Gorshkov, will be inducted in the Indian Navy by October, officials here said. The MiG-29K program was revived in response to the decision of the Indian Navy to acquire the Admiral Gorshkov aircraft carrier. This called for the provision of the ship with a multi-role ship-based arrested- landing fighter of the MiG-29K size. The ship's combat group will include 12 MiG-29K planes. The aircraft has a remote control system, large-area (42 m2 vs 38 m2) folding wing, adjustable center-line air intakes with retractable screens protecting the engines during operation from ground airfields, reinforced landing gear, hook, corrosion- protected reinforced fuselage made specifically for deck-based aircraft.
Pilot training for the squadron, to be named Black Panther, were completed in the US and Russia, said a senior Indian Navy official.
The jets were purchased by the Indian Navy as part of the $740 million contract signed in January 2004 for Admiral Gorshkov, to be commissioned as INS Vikramaditya in the navy. "The pilots were sent to US for deck landing training and the QFIs (qualified flying instructors) to Russia for conversion flying (for converting to different aircraft). The pilots will do the conversion flying in Goa under the supervision of QFIs," the official said on condition of anonymity.
Four to five batches comprising four pilots each had gone to the US for the deck landing training. As the 45,000-tonne Kiev class aircraft carrier Gorshkov is scheduled to be inducted in service only by 2011 after its refurbishment, the aircraft will be based on shore.
The navy will be getting 12 MiG 29K single-seater aircraft and four MiG 29KUB double-seater trainer aircraft in flyaway condition. The trainer version is similar to the single-seater but with a slightly reduced operational range.
The contract also stipulates the procurement of hardware for pilot training and aircraft maintenance, including flight simulators, and interactive ground and sea-based training systems. The MiG 29K have arrestor gear and stronger landing gear for carrier landings, folding wings and rust proofing to reduce corrosion from salt water. Features of the aircraft include a fully digitised glass cockpit, improved engine protection against ingestion of foreign particles (like birds), a multi-mode radar and increased range due to increase in internal fuel capacity.
The MiG-29K multi-role carrier-based fighter is designed to air cover the ship grouping, gain air superiority and destroy sea surface and ground targets with guided high-precision weapons, day and night, in any weather. The aircraft, the first bought by the navy after the Sea Harriers, will also be capable of playing the role of an air refueller.
The contract with MiG will ensure that the navy gets the entire spectrum of services, including a full mission simulator.

Friday, August 07, 2009

DTN News: India Could Agree On Extra $1.2 Billion For Admiral Gorshkov - Report

DTN News: India Could Agree On Extra $1.2 Billion For Admiral Gorshkov - Report
*Source: DTN News / RIA Novosti
(NSI News Source Info) MOSCOW, Russia - August 7, 2009: Russia is hoping to reach an agreement with India in August on an additional $1.2 billion to finalize the overhaul of the Admiral Gorshkov aircraft carrier for the Indian Navy, a Russian newspaper said on Thursday. 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 Admiral Kuznetsov supports strategic missile carrying submarines, surface ships and maritime missile-carrying aircraft of the Russian fleet. The next round of talks to determine the final funding amount for the carrier's repair and modernization is due to take place in India within the next few days. According to Nezavisimaya Gazeta newspaper, India has no alternative but to allocate the required $1.2 bln, despite recent objections from the government's accounting office, because the Indian Navy desperately needs to replace its INS Viraat, which, although currently operational, is now 50 years old. Under the original $1.5 billion 2004 contract between Russia's state-run arms exporter Rosoboronexport and the Indian Navy, which includes delivery of MiG-29K Fulcrum carrier-based fighters, the work on the aircraft carrier was to have been completed in 2008. However, Russia later claimed it had underestimated the scale and the cost of the modernization, and asked for an additional $1.2 billion, which New Delhi said was "exorbitant." After long-running delays and disputes, India offered in February 2008 to raise the refit costs for the aircraft carrier, docked at the Sevmash shipyard in northern Russia for the past 12 years, by up to $600 million. Russia said it was not satisfied with the proposed amount and the issue of the additional funding remains unresolved. The Times of India newspaper said earlier that the deal had been criticized by India's Comptroller and Auditor General (CAG) that called the ship "junk" in a July report. "It can be seen that the Indian Navy was acquiring a second-hand refitted aircraft carrier that had half the life span of and was 60 percent more expensive that a new one," said the report. However, Indian defense minister's aide Pallam Raji has recently said the Indian authorities are ready to consider Russia's proposal to raise the price of the deal by $1.2 bln. Konstantin Makiyenko, deputy director of the Center for Strategic Analysis, a Moscow based think tank, has said that the Indian government will most likely agree on the new deal considering that China has launched an ambitious aircraft carrier construction program. He reiterated that India's only aircraft carrier - INS Viraat - will be decommissioned in the next few years, while construction of its own aircraft carrier would take much longer than the remaining overhaul of the Russian warship. "Basically, India does not have an alternative but to agree [on the deal]," he said. Russia has pledged to finish the Admiral Gorshkov's overhaul as soon as possible and deliver it to India in 2012 if the additional $1.2 bln funding is provided by New Delhi. After modernization, the carrier will join the Indian Navy as INS Vikramaditya, and is expected to be seaworthy for 30 years. Admiral Gorshkov is a modified Kiev class aircraft carrier, originally named Baku. The ship was laid down in 1978 at the Nikolayev South shipyard in Ukraine, launched in 1982, and commissioned with the Soviet Navy in 1987. It was renamed after the collapse of the Soviet Union in 1991. In 1994, following a boiler room explosion, the Admiral Gorshkov sat in dock for a year for repairs. After a brief return to service in 1995, she was finally withdrawn from service in 1996 and put up for sale. The ship's displacement is 45,000 tons. It has maximum speed of 32 knots and an endurance of 13,500 nautical miles (25,000 km) at a cruising speed of 18 knots.

Sunday, July 26, 2009

DTN News: India Glaring Lapses In Gorshkov, Scorpene, Hawk Defence Deals ~ CAG

DTN News: India Glaring Lapses In Gorshkov, Scorpene, Hawk Defence Deals ~ CAG
*Analysis: Internationally, a project for one year takes ten fold longer in India. Decisions are taken at a snail pace and time is wasted on unneccessary red tape bureaucracy. Defense procurement system is politically corrupt, as an example urgently needed Hawk Mk132 advanced jet trainers for Indian Air Force, which took 30 odd years to acquire at the cost of hundreds of young Indian Air Force pilots life. India is the largest democratically governed country in the world as is an examplery system for other nations to follow suit, but at the same time the system is a curse with too many voices and noises, NO ACTION. India should have for some period a system of administration similar to China, which is straightfoward with no two way decision making that would benefit for the betterment of the country at large. (DTN Defense-Technology News)
*Source: DTN News / The Economic Times ~ Rajat Pandit, TNN (NSI News Source Info) NEW DELHI, India - July 26, 2009: : Sleazy wheeling and dealing, huge delays and financial irregularities continue to pervade all defence deals. The Comptroller and Auditor General has now hammered the defence establishment for glaring lapses in the two biggest naval projects — acquisition of Russian aircraft carrier Admiral Gorshkov and indigenous construction of six French Scorpene submarines.
This comes even as India under Russian pressure is getting ready to shell out almost $2 billion (Rs 9,680 crore) over and above what was initially a `fixed price contract' of $974 million for Gorshkov's refit, while the Rs 18,798-crore project to construct six Scorpenes at Mazagon Docks has slipped two years behind schedule, as first reported by TOI.
A senior CAG official, in fact, dubbed the Gorshkov deal as the "biggest defence mess-up" ever, stopping just short of calling it a "scam". ``The defence ministry did not provide us with full cooperation and access to documents for Gorshkov. As for the Scorpene project, undue favour and financial advantage was shown to the French vendor,'' he said.
In its latest report tabled in Parliament on Friday, the nation's auditing watchdog also punched holes in several other major defence projects, including the Rs 8,120-crore project for 66 British Hawk AJTs (advanced jet trainers). Interestingly, this also comes at a time when India is negotiating a follow-on order for 57 more Hawks.
While the desperate need for an aircraft carrier, a modern submarine fleet and AJTs to train rookie pilots cannot be overstated, what the CAG report underlines is a sordid saga of squandering away of public money, without even a hint of long-term strategic planning, whichever be the political dispensation in charge.
If the earlier NDA regime inked the initial $1.5-billion package deal for Gorshkov and the Hawk AJT contract in the run-up to the 2004 general elections, the UPA government in its first avtaar finalised the Scorpene project in October 2005, amid swirling allegations of kickbacks. Coming down particularly heavily on the Gorshkov affair, the CAG report said, ``Indian Navy is acquiring a second-hand refitted carrier that has half the life span and is 60% more expensive than a new one.''
Originally meant to plug the `five-year carrier gap' in the Navy's capabilities from 2007 to 2012, Gorshkov is still a `high-risk' proposition since its delivery acceptance trials may not be completed even by 2012, it added. Russia, as reported earlier, is demanding a whopping $2 billion more over and above the initial $1.5 billion contract of January 2004, under which the carrier refit was pegged at $974 million and the rest earmarked for 16 MiG-29K fighters to operate from its deck.
The CAG report pointed to a 2004 naval assessment that a new aircraft carrier, with a life of 40 years, would cost $1,145 million and take 10 years to build. Gorshkov, in turn, would run for only 20 years. ``The acquisition cost has more than doubled to $1.82 billion in four years,'' said CAG, taking the $1.2-billion figure demanded by Russia in 2007 into account.

Monday, July 20, 2009

DTN News: India Will Pay $ 2.9 Billion For Admiral Gorshkov Aircraft Carrier

DTN News: India Will Pay $ 2.9 Billion For Admiral Gorshkov Aircraft Carrier
*It is a government-to-government engagement: Defence Ministry sources Aircraft carrier expected to be handed over by the end of 2012
*Source: DTN News / Int'l Media
(NSI News Source Info) NEW DELHI, India - July 20, 2009: India is all set to finalise the price tag of aircraft carrier INS Vikramaditya (Admiral Gorshkov), which would be closer to the revised demand made by Russia at $2.9 billion. Authoritative sources in the Ministry of Defence say the figure is likely to be finalised next week when negotiators end discussions. The Russian negotiators arrived here on July 10 and originally intended to stay till July 17. The team has conveyed that the cost had been calculated as per the standards specified by its government and there was little room to de-escalate the cost, revised from its original price of $1.5 billion. This figure too had been later changed to $2.2 billion. After the recent visit of Defence Secretary Vijay Singh, New Delhi was hopeful that the price would be closer to $2.2 billion; however, over the past one week, negotiations had moved in a direction that showed it would be closer to the re-revised demand, the sources said. “Eventually, it must be remembered that this is not a commercial negotiation between a buyer and a seller but a government-to-government engagement. Yet, the negotiations have been arduous,” the sources said. As per the 2004 contract, the aircraft carrier that is undergoing repairs and refit at the Sevmash shipyard, was to have been delivered last year, but it is now expected to be handed over by the end of 2012. The Russian side was told during Mr. Singh’s visit that the deadline would have to be adhered to. In a related development, Russian President Dmitry Medvedev was quoted as telling the builders, during his visit to the shipyard early this month, to ensure delivery of the aircraft carrier on time. India has so far paid $602 million as advance to Russia, with a bulk of that amount being released this year. The final price does not include the 16 MiG29 K deck-jets that India plans to buy for the carrier. Meanwhile, Director of National Maritime Foundation C. Uday Bhaskar told The Hindu, that the deal was important for India-Russia defence cooperation.

Sunday, July 05, 2009

DTN News: President Dmitry Medvedev Urges Completion Of Aircraft Carrier For India

DTN News: President Dmitry Medvedev Urges Completion Of Aircraft Carrier For India *Source: DTN News / Int'l Media
(NSI News Source Info) SEVERODVINSK, Russia - July 5, 2009: The Russian president said on Thursday that modernization of the Admiral Gorshkov aircraft carrier should be completed as soon as possible so that it can be delivered to India in 2012. Admiral Gorshkov was a modified Kiev class aircraft carrier of the Russian Navy, originally named Baku. In 2004, she was sold to India for conversion into a STOBAR carrier to be named INS Vikramaditya. Dmitry Medvedev said the Gorshkov project had become, in effect, the only issue in Russian-Indian relations. "This is the first, very difficult experience. The ship must be finished," he said. "Otherwise there will be serious consequences." India and Russia have yet to agree on the cost of overhauling the Admiral Gorshkov for the Indian Navy (to be renamed Vikramaditya). Under the original $1.5 billion 2004 contract between Russia's state-run arms exporter Rosoboronexport and the Indian Navy, which includes delivery of MiG-29K Fulcrum carrier-based fighters, the work on the aircraft carrier was to have been completed in 2008. However, Russia later claimed it had underestimated the scale and the cost of the modernization, and asked for an additional $1.4 billion, which New Delhi said was "exorbitant." Indian officials familiar with negotiations said the eventual figure would be closer to the $2.2 billion estimate. The aircraft carrier is currently docked at the Sevmash shipyard in northern Russia, with over 2,000 workers employed on the project. The Admiral Gorshkov is to replace India's INS Viraat, which, although currently operational, is now 50 years old. After modernization, the carrier is expected to be seaworthy for 30 years.

Thursday, June 11, 2009

DTN News: Russia Offers Small Decrease In Gorshkov Price to India

DTN News: Russia Offers Small Decrease In Gorshkov Price to India
*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.

Friday, June 05, 2009

DTN News: India, Russia May Agree Admiral Gorshkov Cost By August, 2009: Media Report

DTN News: India, Russia May Agree Admiral Gorshkov Cost By August, 2009: Media Report
(NSI News Source Info) NEW DELHI - June 5, 2009: India and Russia could reach a final agreement by the end of July on the cost of overhauling the Admiral Gorshkov aircraft carrier to be delivered to the Indian navy, the Hindu newspaper said on Friday. The original $1.5 billion 2004 contract between Russia's state-run arms exporter Rosoboronexport and the Indian Navy, which includes the delivery of MiG-29K Fulcrum carrier-based fighters, envisioned that work on the aircraft carrier would be completed in 2008. However, Russia later claimed it had underestimated the scale and the cost of the modernization, and demanded an additional $1.4 billion, which New Delhi said was "exorbitant." A joint Indian-Russian working group met last week in Moscow to start preparing a revised agreement on the Admiral Gorshkov (future INS Vikramaditya) by the end of July. The Hindu said that "although a final price tag is yet to be determined, Indian officials familiar with negotiations said on Thursday that the eventual figure would be closer to the $2.2 billion estimate." The aircraft carrier is currently docked at the Sevmash shipyard in northern Russia, with over 2,000 workers carrying out repairs. According to the paper, the Indian delegation led by Defense Secretary Vijay Singh has asked Russia to ensure delivery of the aircraft carrier by December 2012. The Admiral Gorshkov carrier is to replace India's INS Viraat carrier, which, although currently operational, is now 50 years old. After modernization, the carrier is expected to be seaworthy for 30 years.

Friday, February 13, 2009

Russia Delivers 4 MiG-29 Fighters To India

Russia Delivers 4 MiG-29 Fighters To India
(NSI News Source Info) BANGALORE, India - February 13, 2009: Russia has delivered the first four MiG-29 Fulcrum-D naval fighters to India and will supply the remaining 12 aircraft by the end of 2009, the head of Russia's MiG aircraft maker said on Thursday. Russia and India signed a contract on January 20, 2004, stipulating the supply of 12 single-seat MiG-29K and four two-seat MiG-29KUB to New Delhi as part of a $750 million deal to deliver the Admiral Gorshkov aircraft carrier currently being retrofitted in Russia for the Indian Navy. "The first four aircraft have been inspected by Indian technical experts and the [Indian] pilots are taking a five-month flight training course," Mikhail Pogosyan said at a news conference on the sidelines of the Aero India 2009 show in the southern city of Bangalore. Pogosyan also said the remaining fighters would be delivered to India by the yearend, as stipulated by the contract. The aircraft will be later deployed on board the Admiral Gorshkov aircraft carrier, which is due to enter service in the Indian navy in 2012 as the INS Vikramaditya.