India threatens to review its defence relations with Russia
* Indian navy chief rejects Russian demands for renegotiation of defence deals
NEW DELHI: India has threatened to review defence relations with Russia following Moscows raising the prices of various military deals and vacillating on handing over aircraft carrier Admiral Gorshkov.
Addressing a press conference here on Monday, Navy Chief Admiral Sureesh Mehta reacted sharply to the latest Russian delays, saying they would make India ponder where our defence relations are going to with Moscow.
He rejected Russia s demands for price negotiations on the aircraft carrier deal. He said India had already paid a huge sum in advance. We have paid more than $400 million for the carrier and we own it now. I have told the government that the navys line is that we should not talk on renegotiating the price for the carrier.
Russia not only increased the annual escalation cost of the weapon system from 2.55 percent to 5 per cent, it is also demanding an additional $1.2 billion to deliver Admiral Gorshkov.
The aircraft carrier was originally priced at $974 million and was supposed to be delivered in late 2007 or early 2008. This was later pushed to 2010-11. With the latest developments, the delivery is likely to be delayed even more. But now, Moscow also wants the price to be revised to a whopping 2.7 billion dollars. The Russians say 2,400 km of re-cabling work is required on the ship, hence the escalation.
When we signed the deal, it was a fixed-price contract, taking into account all eventualities of retrofitting... The retrofitting process will take at least two years... We have to see where our relations are going to with Moscow, said Mehta. We should not pay anything more than what we have committed in the original contract.
India signed a deal with Russia on January 20, 2004, for Gorshkov along with 12 single-seat MIG-29 fighters and four twin-seat MiG-29 trainers.
Of late, Moscows nightmares over the Indian bonhomie with the US are getting reflected in defence negotiations. Besides Gorshkov, the Russians gave a tough time to the Indians over supplying 40 new SU-30 MKI fighters. Moscow demanded that the price be revised, citing cost escalations, and India ended up paying an additional $40 million.
The navy chiefs comments come ahead of a visit by a high-level Russian delegation, arriving here later this week for price renegotiations.
Daily Times - Leading News Resource of Pakistan