xebex
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I think russia was demanding 2.9bn then it came down to 2.2bn. I dont know watz the cost now.
Indian Acquisition of the Gorshkov
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I think russia was demanding 2.9bn then it came down to 2.2bn. I dont know watz the cost now.
heartwinlion
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Gorshkov deal runs into choppy waters
The Mumbai terror attacks, rise of China, and increase of piracy in the region, requires India to have Navy capable of projecting India's military power far away from the Indian shores.
An aircraft carrier is central to this, but India's efforts to get replacement for its ageing aircraft carrier seem to have run into choppy waters.
The Russians are coming and it isn't good news for the Indian military, which desperately wants the Gorshkov aircraft carrier.
A team is arriving on this for the final round of negotiations. Russia wants about $2.9 billion for delivery in 2012.
The original deal was about 974 million dollars for delivery last year. But that's not it.
The worry is Moscow could exploit India's desperation - one is to replace India's ageing carrier Virat.
The other is to get a Russian nuclear powered submarine to train the Indian Navy. No other country except Russia will lease one.
Moscow also wants India to buy 19 additional MIG 29s at a cost of another $1.9 billion, but which will only be delivered in 2014.
Realistically speaking, India has no option but to get the Gorshkov and Nerpa nuclear submarine at whatever price. But given the financial crises, Russia's military firms are in, Delhi's oldest ally, Moscow, is sure to extract a high price.
The Mumbai terror attacks, rise of China, and increase of piracy in the region, requires India to have Navy capable of projecting India's military power far away from the Indian shores.
An aircraft carrier is central to this, but India's efforts to get replacement for its ageing aircraft carrier seem to have run into choppy waters.
The Russians are coming and it isn't good news for the Indian military, which desperately wants the Gorshkov aircraft carrier.
A team is arriving on this for the final round of negotiations. Russia wants about $2.9 billion for delivery in 2012.
The original deal was about 974 million dollars for delivery last year. But that's not it.
The worry is Moscow could exploit India's desperation - one is to replace India's ageing carrier Virat.
The other is to get a Russian nuclear powered submarine to train the Indian Navy. No other country except Russia will lease one.
Moscow also wants India to buy 19 additional MIG 29s at a cost of another $1.9 billion, but which will only be delivered in 2014.
Realistically speaking, India has no option but to get the Gorshkov and Nerpa nuclear submarine at whatever price. But given the financial crises, Russia's military firms are in, Delhi's oldest ally, Moscow, is sure to extract a high price.
Screaming Skull
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Thu Jul 2, 2009
* Medvedev lambasts shipbuilder for late delivery to India
* Sevmash cites higher costs, technology problems
* Sevmash cites higher costs, technology problems
By Denis Dyomkin
SEVERODVINSK, Russia, July 2 (Reuters) - President Dmitry Medvedev on Thursday lashed out at Russian shipbuilder Sevmash for delays on a landmark contract with India, traditionally a close trading partner.
Arms exports, which exceeded $8 billion last year, are a key source of revenue for Russia. India and China account for the bulk of Russia's defence industry sales.
In a $1.6 billion deal signed in 2004, Russia was to modernise the Admiral Gorshkov at Sevmash, in the northern port of Severodvinsk, and deliver the aircraft carrier by 2008.
After delays from the Russian side, the delivery was pushed back to 2012 and its price nearly doubled to $2.8 billion. The contract has become a painful issue in India-Russia relations.
"Now we all have to make excuses to one another," Medvedev told Sevmash general director Nikolai Kalistratov during their meeting in Severodvinsk on the White Sea.
"You have to make excuses to me, I have to make excuses to the Indian partners," a visibly irritated Medvedev added.
The modernisation of Admiral Gorshkov, was expected to lead on to other lucrative contracts, including tanks, aircraft and warships.
The ship, already renamed INS Vikramaditya, was first launched in 1982 and was decommissioned in 1996. Smaller than U.S. carriers and powered by steam engines rather than nuclear reactors, it originally carried helicopters and vertical take-off and landing aircraft.
Russian engineers have had to lengthen the runway and build up a proper springboard to allow conventional warplanes to reach take-off speed.
"We have failed to assess correctly the scale and the complexity of works," Sevmash's Kalistratov told Medvedev. "We in Russia are doing this for the first time."
He said the ship would be handed over to India in late 2012. "We can't make it earlier than that," he said.
"Let's consider this the first and most difficult experience," Medvedev said.
"You need to complete (the ship) and hand it over to partners. Otherwise we will only see bad consequences."
(Writing by Oleg Shchedrov; Editing by Louise Ireland)
http://in.reuters.com/article/domesticNews/idINL244123220090702?pageNumber=1&virtualBrandChannel=0
Screaming Skull
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02/07/2009
SEVERODVINSK, July 2 (RIA Novosti) - 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.
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.
Medvedev urges completion of aircraft carrier for India | Top Russian news and analysis online | 'RIA Novosti' newswire
Gabbar
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Gorshkov project sole irritant in Indo-Russian ties: Medvedev
MOSCOW: Describing the delay in upgradation of 'Admiral Gorshkov' aircraft carrier for Indian navy as the "sole" irritant in bilateral ties, Russian
president Dmitry Medvedev on Friday ordered the shipbuilders to speedily complete the work or else it will have "serious consequences."
"In fact the 'Gorshkov' project has become the sole problem in Russian-Indian relations," Medvedev said during a visit to the Sevmash shipyard in the White Sea town of Severodvinsk.
The Russian president also blasted the management, bureaucrats and ministers involved in the Gorshkov project.
He agreed that it was Russia's first project which was "very difficult," but said that the Russian side has taken certain obligations in the course of negotiations on the Gorshkov deal with the Indian partners.
Prior to the Soviet collapse, aircraft carriers used to be built in Ukraine.
Responding to Sevmash General Director's argument about the whopping cost escalation due to additional work in the course of modernisation, an irritated Medvedev said in his televised remarks: "Why did you sign (Gorshkov deal)? As a result all of us have to give explanations, you to me and me before the Indian colleagues."
"Complete the work and deliver the ship, otherwise it would have serious consequences," Medvedev cautioned.
MOSCOW: Describing the delay in upgradation of 'Admiral Gorshkov' aircraft carrier for Indian navy as the "sole" irritant in bilateral ties, Russian
president Dmitry Medvedev on Friday ordered the shipbuilders to speedily complete the work or else it will have "serious consequences."
"In fact the 'Gorshkov' project has become the sole problem in Russian-Indian relations," Medvedev said during a visit to the Sevmash shipyard in the White Sea town of Severodvinsk.
The Russian president also blasted the management, bureaucrats and ministers involved in the Gorshkov project.
He agreed that it was Russia's first project which was "very difficult," but said that the Russian side has taken certain obligations in the course of negotiations on the Gorshkov deal with the Indian partners.
Prior to the Soviet collapse, aircraft carriers used to be built in Ukraine.
Responding to Sevmash General Director's argument about the whopping cost escalation due to additional work in the course of modernisation, an irritated Medvedev said in his televised remarks: "Why did you sign (Gorshkov deal)? As a result all of us have to give explanations, you to me and me before the Indian colleagues."
"Complete the work and deliver the ship, otherwise it would have serious consequences," Medvedev cautioned.
rhythm_guy
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we Indian ppl ever consider Russians as our sole partners..... we trust on them than anyone else......sumtime there be some ups N downs come in any relationship but I hope all things will be normal soon-......
indiatech
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India doesn't have a lot of friends and russia is more than a friend. Its not just a few years. And this is more than money and materialism.
Thanks for supporting us and believing in us. We will take it to greater heights.
INDIA just dont buy technoilogy from russia and copy and start selling. There are a lot who do that.
Thanks for supporting us and believing in us. We will take it to greater heights.
INDIA just dont buy technoilogy from russia and copy and start selling. There are a lot who do that.
sudhir007
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India to pay around $2.2 billion for Gorshkov's refit to end wrangling - India - The Times of India
NEW DELHI: The protracted bitter wrangling over huge cost escalation in aircraft carrier Admiral Gorshkov, which caused a distinct chill in the
expansive Indo-Russian defence ties, is virtually over now.
After three Indian delegations visited Russia one after the other last month, the two sides came together in New Delhi on Tuesday-Wednesday for the `firm and final' price negotiations to break the festering deadlock.
"We are confident the total cost for Gorshkov's refit will be pegged somewhere around $2.2 billion,'' said a top Indian official.
India has already managed to `reduce' the $600 million figure being asked by Russia for the 44,570-tonne Gorshkov's year-long sea trials in the Barents Sea slated for 2011-2012.
While most of the trials will still be held in Russia, apart from training of Indian pilots for MiG-29K take-offs and landings from Russian carrier Admiral Kuznetsov, some will now be conducted in Indian waters to cut costs.
Defence minister A K Antony, on his part, told Parliament on Wednesday that "acceptance trials'' for delivery of Gorshkov, rechristened INS Vikramaditya, to India are `expected to be completed' in December 2012.
India, of course, is banking upon Gorshkov for its long-standing aim to have two operational `carrier battle-groups' by 2015 or so, with the other carrier, a 40,000-tonne indigenous warship, being built at Cochin Shipyard.
Incidentally, during a recent visit to Sevmash Shipyard in north Russia where Gorshkov is berthed, Russian President Dmitry Medvedev said the delay in the carrier's upgradation was `the sole irritant' in Indo-Russian relations.
As first reported by TOI, the new contract for repair and re-equipping of Gorshkov -- for which India has already paid $602 million till now -- will be one of the first big defence procurements to be cleared by UPA-2 towards end-July or early-August.
That will finally bring closure to Gorshkov's controversy-ridden saga, which began in the mid-1990s with Russia offering the second-hand, partly-burnt carrier as "a free gift''. The condition was that India would pay for its refit as well as the MiG-29K fighters to operate from its deck.
The $1.5-billion contract was finally inked in January 2004, with the carrier refit costing $974 million and the rest for 16 MiG-29Ks. Under it, Gorshkov was to be delivered by August 2008.
But then came the shocker. Russia in mid-2007 demanded another $1.2 billion for Gorshkov's refit in addition to the initial $974 million, apart from pushing back its delivery to December 2012, holding that work on it had been "grossly under-estimated'' earlier.
Though after much heart-burn, India eventually agreed, more was to follow. Russia last year said it now wanted $2 billion more for refit, taking the total cost to around $2.9 billion. India, of course, wants the figure down to the $2.2-billion mark.
NEW DELHI: The protracted bitter wrangling over huge cost escalation in aircraft carrier Admiral Gorshkov, which caused a distinct chill in the
expansive Indo-Russian defence ties, is virtually over now.
After three Indian delegations visited Russia one after the other last month, the two sides came together in New Delhi on Tuesday-Wednesday for the `firm and final' price negotiations to break the festering deadlock.
"We are confident the total cost for Gorshkov's refit will be pegged somewhere around $2.2 billion,'' said a top Indian official.
India has already managed to `reduce' the $600 million figure being asked by Russia for the 44,570-tonne Gorshkov's year-long sea trials in the Barents Sea slated for 2011-2012.
While most of the trials will still be held in Russia, apart from training of Indian pilots for MiG-29K take-offs and landings from Russian carrier Admiral Kuznetsov, some will now be conducted in Indian waters to cut costs.
Defence minister A K Antony, on his part, told Parliament on Wednesday that "acceptance trials'' for delivery of Gorshkov, rechristened INS Vikramaditya, to India are `expected to be completed' in December 2012.
India, of course, is banking upon Gorshkov for its long-standing aim to have two operational `carrier battle-groups' by 2015 or so, with the other carrier, a 40,000-tonne indigenous warship, being built at Cochin Shipyard.
Incidentally, during a recent visit to Sevmash Shipyard in north Russia where Gorshkov is berthed, Russian President Dmitry Medvedev said the delay in the carrier's upgradation was `the sole irritant' in Indo-Russian relations.
As first reported by TOI, the new contract for repair and re-equipping of Gorshkov -- for which India has already paid $602 million till now -- will be one of the first big defence procurements to be cleared by UPA-2 towards end-July or early-August.
That will finally bring closure to Gorshkov's controversy-ridden saga, which began in the mid-1990s with Russia offering the second-hand, partly-burnt carrier as "a free gift''. The condition was that India would pay for its refit as well as the MiG-29K fighters to operate from its deck.
The $1.5-billion contract was finally inked in January 2004, with the carrier refit costing $974 million and the rest for 16 MiG-29Ks. Under it, Gorshkov was to be delivered by August 2008.
But then came the shocker. Russia in mid-2007 demanded another $1.2 billion for Gorshkov's refit in addition to the initial $974 million, apart from pushing back its delivery to December 2012, holding that work on it had been "grossly under-estimated'' earlier.
Though after much heart-burn, India eventually agreed, more was to follow. Russia last year said it now wanted $2 billion more for refit, taking the total cost to around $2.9 billion. India, of course, wants the figure down to the $2.2-billion mark.
mudassar86
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well i think so that india instead buying this ship should work on poverty projects in india work on aids project and then step up the income of 400 milliion indians. as when the people of any country having this type of problem listen that there country buying an air craft carrier it does not make sense if specially for india from which country it is having threat. pakistan which will not fight in indian ocean with india. china whch has too big border if they fight. it means that india only wants it be ruler of indian ocean. i have a request that spend 800 million dollars on your people. not on arms which are already used and are going restructure. it is looking like some one importing recondition car from japan
Jako
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done with your lecture??.....we have had enough of this type of comments from both sides for a long time,buddy.....for your info,compare india's expenditure in defence by % of gdp with its neighbours......after that your lecture would roll back to from where it originated.....lolz
maverick2009
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Muddasser.
Your telling India about Feeding people.
Pakistan is in a real state having to get emergency IMF loans of smal amounts ie $7 billion
Your forex has virtaully wiped out at $8 billion.
Your heavily dependant on Grant Aid from USA.
Yet you claim india needs to help its poor.
Dont see India Gov,t looking for hand outs do you ???
Your telling India about Feeding people.
Pakistan is in a real state having to get emergency IMF loans of smal amounts ie $7 billion
Your forex has virtaully wiped out at $8 billion.
Your heavily dependant on Grant Aid from USA.
Yet you claim india needs to help its poor.
Dont see India Gov,t looking for hand outs do you ???
Chinese wants to see Pakistan highlighted in India's radar while it quietly strengthen it's defenses and offensive capacities around India. After considering the SC0 factor, it's highly likely that Russia came into understanding with China in delaying this AC to India. Other possible factor could have been the MRCA deal (pressurize India to get MiGs), but that can be ruled out since it doesn't fit in the timeline and extent of delay.
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