$200 m sought for Gorshkov overhaul

Moscow wants New Delhi to immediately pay $200 million to cash-strapped Sevmash shipyard in order to speed up the upgrade of Admiral Gorshkov even though the final price negotiations of the ship are expected to be completed during Russian Defence Minister A Serdyukov’s visit to Delhi later this month.

Government sources said that after New Delhi expressed concern over the slow progress in overhauling Gorshkov (to be called INS Vikramaditya) at the Sevmash shipyard in North Sea, Russian asked South Block to immediately put in money without prejudice to the on-going price negotiations. Moscow had raised demand for an additional $1.2 billion after the two sides signed an agreement on $750 million for the aircraft carrier.

As the aircraft carrier is now expected to be inducted only by 2012 (August 15, 2008 was the original date), the issue will be taken up by the Indian side at the 8th Inter-Government Meeting on Military Technical Cooperation on September 28-29. During Serdyukov’s trip, the Indian side will mount pressure on its Russian counterpart to scale down the $1.2 billion demand.

Official sources said that South Block was even considering holding trials of the refitted Admiral Gorshkov and handle some technical work so that the additional costs could be cut down by nearly 50 per cent. However, the Indian Navy is totally opposed to this idea, as New Delhi would end up getting the blame from Russians if any system or armament malfunctions during the trials. The Navy wants only the

Russians to integrate the weapons on to the air defence platform so that the responsibility is entire on them.

Even though the Cabinet Committee on Security has given the mandate to Defence Ministry to negotiate the price of Gorshkov, the latter would have to go back to the apex body once the two sides arrive at a figure. But given the financial condition of the shipyard and India’s urgency, with its sole aircraft carrier INS Viraat on its last legs, Russians will drive a hard bargain.

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