While this wavering by Russia could set off a diplomatic row, Moscow is firm that it will meet the delivery deadline of 2012. The first of the series of trials, the Russian team has said, would start next year. However, the trials alone have been estimated at $500 million which could increase depending on prevalent oil costs.
Sources said Russia wants to ensure it bears absolute no cost in the entire deal. Admiral Gorshkov, which has not sailed much while in active service after it caught fire, needs to be completely refurbished. While India is building its own indigenous aircraft carrier, the progress has been slow and the date of completion has now been pushed to 2014-15.
2004-’09: A 5-YEAR RUSSIAN DRAMA
Jan 2004: Original deal signed by NDA government to purchase the carrier and complement of MiG 29 K fighters for $974 mn.
April 2007: Russia says cannot deliver on time, also need to increase price as shipbuilders underestimated amount of work required
Nov 2007: Russia says the Gorshkov will cost India another $1.2 bn
Feb 2008: A team headed by the Defence Secretary inspects the Gorshkov
May 2008: India makes an advance payment of $250 mn, pending price re-negotiations
June 2008: Russia puts extra workers on the job, says more advance payments needed
Dec 2008: CCS gives approval to re negotiate contract. By now, India has paid $500 mn extra
Jan-Feb 2009: Final round of negotiations on
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