Indian Acquisition of the Gorshkov

[LCA]

The Russian side confirms that in the year 2012 will convey India modernized ship "ADMIRAL GORSHKOV"


Moscow, 21 April. (ITAR-TASS). Russia in the year 2012 will convey India modernized at the shipbuilding company "Sevmash" ship "ADMIRAL GORSHKOV". This date reiterated by President "Joint Shipping Corporation" (OSC) Vladimir PAKHOMOV a published today interview time News ".

By agreement with the Indian party Date of transmission-2012. work against the taking place in three shifts, employing nearly 2, 000. highly-skilled workers. will increase the number of work, to increase the pace of work, but not to harm quality. Under negotiation with the Indian side of additional financing, "said PAKHOMOV.

The contract to modernize ship "ADMIRAL GORSHKOV" was concluded with India in 2004. Initially the transfer ship had been planned in 2008. However, because of the increase in time for completion of an aircraft carrier go for 2012-2013. The Indian Navy aircraft carrier was called the "Vikrmaditya ".

On the condition that adequate funding "Sevmash" expects to complete modernization and initiate plant testing ship in 2011. It is expected that the term of service would be no less than 30 years. The base against the 16 fighters MiG-29K and marine ASW helicopters Ka-31 and Ka-27.

 

[Screaming Skull]

India pays $1.6 bn for warship, Russian wants more​

Tue, Apr 21, 2009

Moscow: Russia will ask India to pay far more that originally agreed for a refurbished Soviet-era aircraft carrier that is already a year overdue, the firm overhauling the ship said on Tuesday.

India, a key buyer of Russian arms such as tanks and fighter jets, in 2004 signed a $1.6 billion deal with Russia for the delivery of the modernised Admiral Gorshkov carrier by 2008.

The carrier may now cost between $2.5 and $4 billion depending on "tough" negotiations with New Delhi, Interfax news agency quoted Nikolai Kalistratov, the head of Sevmash Shipyard, as saying.

"According to our calculations, verified by (Russia's) Federal Tariffs Service, all in all at least $2.5 billion is needed," he said. "All of us should make efforts to convince the Indian side that our calculations are absolutely objective," Kalistratov said.

"A new aircraft carrier of this class costs around $4 billion." Sevmash Shipyard was not immediately available for comment.

The Admiral Gorshkov, already renamed INS Vikramaditya, was first launched in 1982 and was decommissioned in 1996.

The ship, smaller than US carriers and powered by steam engines rather than nuclear reactors 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.

One factor that may have added to the cost and delay is Russia lacks expertise in building aircraft carriers. Soviet-era carriers were built in Mykolayiv which is now part of Ukraine. The Northern Fleet's Admiral Kuznetsov, powered by steam turbines, is currently Russia's only aircraft carrier.

 

[old monk]

wow what a great news to start

so when will it be commissioned? by 2020

 

[Gabbar]

Def Secy to visit Russia to break Gorshkov deadlock

New Delhi, May 01: India is sending its Defence Secretary Vijay Singh to Russia on Sunday to break a deadlock over Moscow's hiked price of USD 2.9 billion for the Admiral Gorshkov aircraft carrier.

During the three-day visit, Singh is likely to meet his counterpart in Moscow, apart from negotiating with officials from the Sevmash Shipyard, where the aircraft carrier is currently undergoing refit and repair, sources said here today.

The deal was initially signed for a price of USD 974 million in January 2004. Thereafter Russia hiked it to USD 2.1 billion in 2007 and further increased it to USD 2.9 billion in February this year.

The negotiations came a cropper this February, hitting India's efforts to induct the warship into its fleet by 2012.

The Russian decision to seek USD 700 million had been conveyed to India on February 10 during a bilateral meeting to re-negotiate the Russian demand for additional payment for the 44,500-tonne warship.

The Sevmash Shipyard was also stressing on an immediate release of USD 190 million for continuing the repair work, which had slowed down due to the fresh price negotiations.

Russia had informed that a final total price of $ 2.9 billion would be agreeable to it, but India, which has already paid $ 500 million for Admiral Gorshkov, had balked over such a high demand that could push the cost of the warship to three times its contracted price.

The warship, rechristened by India as INS Vikramaditya, was originally planned for delivery this year, but the demand for more payments by Russia had led to the delivery schedule being pushed to 2012.

India had till December last held that it needed time to consider the issue. However, the Cabinet Committee on Security that month gave its approval to renegotiate the deal.

It was agreed by both sides, during the then state visit of Russian President Dmitrey Medvedev, that the revised price should be finalised by March 2009.

The Russians had first made the demand for additional payment of USD 1.2 billion for the warship in November 2007, pushing the cost of the aircraft carrier to USD 2.1 billion.

The revised offer of USD 2.9 billion did come as a surprise for India, which was expecting Moscow to agree on a middle-ground on its earlier proposal for USD 2.1 billion.

The Navy was hoping that the first sea trails of the Gorshkov would be carried out in early 2010, but if the negotiations are further delayed, then the sea trials schedule could be pushed back further.

 

[Keysersoze]

I am betting if the MRCA goes Russia's way then this will be sorted a lot sooner and at a better rate for India....

 

[Gabbar]

I am betting if the MRCA goes Russia's way then this will be sorted a lot sooner and at a better rate for India....

They Russian will jack the price for MRCA after signing the deal. Then we might have float another tender for big defence puchase to lower the price for that?

 

[heartwinlion]

UPA-2 set to clear ?new? Gorshkov deal by July-end - India - The Times of India


NEW DELHI: The first big defence procurement decision the new UPA government will take is likely to be the whopping cost escalation in the Russian
aircraft carrier Admiral Gorshkov deal.

India and Russia have now cranked up negotiations to settle the bitter wrangling over the ongoing refit of Gorshkov — rechristened INS Vikramaditya after India paid an initial $500 million — at Sevmash shipyard in north Russia.

Sources say three top Indian defence teams will visit Russia in quick succession, within 30 days, to ensure the ‘‘new’’ Gorshkov deal is sent to the Cabinet Committee on Security for approval by end-July. Russia wants as much as $2 billion more to deliver the 44,570 tonne Gorshkov by end-2012, over and above the original $1.5 billion package deal signed in January 2004, as was first reported by TOI in July 2008.

Gorshkov’s refit was pegged at $974 million in the original $1.5 billion deal, with the rest for 16 MiG-29K fighters to operate from the carrier and other things. But Russia stunned India by first asking for $1.2 billion more for the warship’s refit in 2007, and then further hiked it to $ 2 billion last year. India, of course, has been banking upon Gorshkov for its long-standing aim to have two operational ‘carrier battle-groups’ by 2015 or so.

‘‘So, while Russia is asking for $2.9 billion for the refit alone, India is negotiating around the $2.2-billion mark. The final figure is in sight now,’’ said a source.

The first team, headed by Navy’s assistant controller of warship production and acquisition, in fact, will be leaving for Russia on Monday itself for ‘‘a detailed item-by-item costing’’ of the refit.

Then, a high-powered delegation led by defence secretary Vijay Singh will leave for Russia on June 1. Though ‘‘the entire range of issues’’ in the expansive Indo-Russia military relationship will be reviewed, Gorshkov’s refit will figure high in the talks. Finally, a team led by Navy’s controller of warship production and acquisition, Vice Admiral Ganesh Mahadevan, in mid-June will ‘‘negotiate the scope’’ of Gorshkov’s year-long sea trials in Barents Sea in 2011.

This is important since the finance ministry has objected to the $600-million figure listed by Russia for the trials in its overall $2.9 billion demand. ‘‘It will be decided what trials are essential in Russia and what can be done in India. Navy pilots will, for instance, have to practice take-offs and landings from Russian carrier Admiral Kuznetsov,’’ said the source.

India, on its part, has told Russia it wants ‘‘a final fixed sum and delivery schedule’’ at the end of the three visits. ‘‘With 2,000 workers engaged in its refit, Gorshkov is doing quite well at Sevmash at present. Its harbour trials should begin by end-2010,’’ he said.

 

[indiatech]

May 26, 2009, (Sawf News) - Renegotiation of the price for INS Vikramaditya is being fast tracked with three teams scheduled to visit Russia over the next month.

A senior official of the Controller of Warship Production and Acquisition left for Russia on Monday to work out the “item-by-item” cost of refitting the erstwhile Admiral Gorshkov, reports the Indian Express

On June 1, Defense Secretary Vijay Singh will lead a team to Moscow for comprehensive talks covering the entire gamut of Indo-Russian defense relations and with particular focus on the Gorshkov deal.

A senior official of the Controller of Warship Production and Acquisition will visit Russia in the middle of June to work out the warship’s trials in Barents Sea in 2011.

Under a contract signed in January 2004, Russia's Rosoboronexport was to deliver the 44,570-tonne aircraft carrier, Admiral Gorshkov, to India in 2008. The $1.5 billion contract earmarked $964 billion for the Gorshkov and $536 million for the complement of 16 MiG-29K fighter aircraft on board.

The Admiral Gorshkov entered service with the Russian Navy in 1987, but was deactivated in 1996.

The contract covers complete overhaul of the ship, which had remained docked at the Sevmash shipyard in northern Russia for the past 12 years, fitting a ski jump take off, and equipping it with modern weaponry, including MiG-29K Fulcrum aircraft and Ka-27 Helix-A and Ka-31 Helix-B anti-submarine helicopters.

After modernization, the carrier is expected to be seaworthy for 30 years.

The Gorshkov is to be inducted into the Indian Navy as INS Vikramaditya, a replacement for India's INS Viraat, which is now 50 years old.

The carrier has a 273m flight deck to carry up to 20 MiG-29 fighters and up to eight Kamov Ka-28/Ka-31 helicopters. Eventually, it would carry HAL Tejas trainer aircraft, Dhruv light helicopters, Kinzhal air defense missiles and Kashtan air defense gun or missile systems.

 

[heartwinlion]

http://www.ptinews.com/pti\ptisite.nsf/0/0A6D51B56E6DE555652575C8003C2E3D?OpenDocument

Moscow, Jun 1 (PTI) India and Russia have finalised a new price for the aircraft carrier 'Admiral Gorshkov' after months of protracted negotiations and the refitted warship would be delivered to the Indian Navy by 2012, top Russian officials said today.

"New Delhi has agreed to allocate extra funds for the carrier which would be delivered to the Indian Navy in 2012, four years behind schedule," they said.

Though the officials did not spell out the new price for the carrier, they said India has agreed to release extra funds for the upgradation works on the Kiev class carrier after an assessment by a naval team led by Rear Admiral P K Nair and a group of Russian experts of contractors and vendors.

The new deal could be tied up later this week after Indian Defence Secretary Vijay Singh's negotiations with his Russian counterpart. Singh has been sent to Moscow by the Defence Minister A K Antony, reflecting the new government's resolve to speed up all defence purchases.

Any fresh deal worked out would have to have the concurrence of the Cabinet Committee of Security (CCS).

"The negotiations were successful," Sevmash CEO Nikolai Kalistratov was quoted as saying by ITAR-TASS, without giving details of the exact figures involved. PTI

 

[Screaming Skull]

Indian negotiation skills at their best; gets a steal of a deal; Russia to absorb losses​

The reconstruction of the aircraft carrier ”Admiral Gorshkov” for the Indian Navy will be done with losses for the Russian side, officials admit. The vessel is to be handed over to India in 2012.

Deputy Director of the Federal Service on military-technical cooperation Aleksandr Fomin confirms that the contract with the Indians will not bring profits to the Russian side, Korabelnaya Storona reports.

In negotiations with the Indian Navy late last year, the Russians demanded that the Indians pay up to two billion USD additional for the reconstruction. According to media reports, the Indian side has expressed willingness to pay, but has not yet provided necessary guarantees.

The “Amdiral Gorshkov” was sold to India in 2004. Since then it has been docked in the Sevmash yard in Severodvinsk, Arkhangelsk Oblast, for upgrades. The Indians have renamed the vessel "Vikramadia".

The original Russian-Indian agreement of 2004 included a cost frame of 974 million USD for upgrades and an additional 530 million USD for the acquisition of 16 MIG-29K fighter jets and a number of KA-31 and KA-27 helicopters, Wikipedia informs.

Russia?s aircraft problem - BarentsObserver

 

[luckyy]

a midway compromise has made...
russia was demanding $2.2 bn more....
i heard compromise has made at $1 bn more...

 

[heartwinlion]

any news about what exact amount which make both happy

 

[white_pawn]

India agrees to allocate extra funds for Gorshkov refitting ​

Moscow: India and Russia have finalised a new price for the aircraft carrier Admiral Gorshkov after months of protracted negotiations and the refitted warship would be delivered to the navy by 2012, top Russian officials said on Monday.

“New Delhi has agreed to allocate extra funds for the carrier which would be delivered to the navy in 2012, four years behind schedule,” they said.

Though the officials did not spell out the new price for the carrier, they said India has agreed to release extra funds for the upgradation works on the Kiev class carrier after an assessment by a naval team led by Rear Admiral P K Nair and a group of Russian experts of contractors and vendors. The new deal could be tied up later this week after Indian Defence Secretary Vijay Singh’s negotiations with his Russian counterpart. Singh has been sent to Moscow by the fefence minister A K Antony, reflecting the new government’s resolve to speed up all defence purchases. Any fresh deal worked out would have to have the concurrence of the Cabinet Committee of Security. “The negotiations were successful,” Sevmash CEO Nikolai Kalistratov was quoted as saying by ITAR-TASS.

 

[King Julien]

India pays USD 102 mn more to Russia for Gorshkov refit



New Delhi, Jun 4 (PTI) India has paid an additional USD 102 million to Russia to speed up Admiral Gorshkov aircraft carrier refit project, even as officials from both sides are working overtime to break the deadlock over Moscow's fresh demand for USD 2.9 billion for the warship.
With the release of additional funds last week, India has now paid a total of USD 602 million for Admiral Gorshkov, purchased in 2004 for USD 964 million and currently undergoing repair and refit at Sevmash shipyard in north Russia, a Defence Ministry official said here today.

Only last week a team of Defence Ministry officials had visited Moscow to discuss the scope of trials of the aircraft carrier.

This week, a team led by Defence Secretary Vijay Singh visited Moscow for the high-level monitoring committee meeting, where Russia's additional demand for USD 2.9 billion was discussed.

"It has been decided that by July we will come up with a firm cost (for Gorshkov) on the basis of which fresh inter-governmental agreement and a time schedule for delivery before December 2012 can be worked out, so it does not roll over to the next year. The final cost can be somewhere closer to USD 2.2 billion than USD 2.9 billion," the official said. PTI

India pays USD 102 mn more to Russia for Gorshkov refit

 

[Neo]

India, Russia may agree Admiral Gorshkov cost by Aug. - paper​

NEW DELHI, June 5 (RIA Novosti) - 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.