Russia and India agreed in Admiral Gorshkov matter
08.12.2009 Russia and India have entirely arranged all issues related to modernization of aircraft carrying cruiser Admiral Gorshkov, says RIA Novosti referring to the source close to the talks. It was previously reported that the parties could not agree in financial matters. In particular, Sevmash shipyard evaluated the vessel's completion as $1.2 bln.
The contract on modernization and delivery of Admiral Gorshkov which will be renamed after joining Indian Navy into Vikramaditya (means Almighty on Sanskrit) was signed in 2004. According to preliminary transaction terms, total cost of cruiser refitting would be $1.5 bln, the half was planned for procurement of deck-based fighters MiG-29K/KUB. The ship was expected to be delivered in 2008.
It was emerged later that shipwrights of Sevmash had to increase scope of work; the overall cost of modernization had significantly grown (some media sources mentioned the sum of $2 bln) and delivery term of the cruiser to Indian Navy was postponed. According to Alexander Fomin, Deputy Director of Federal Service for Military Industrial Cooperation (FSMIC), India will get the carrier by 2012.
Transaction of Admiral Gorshkov is considered unprofitable both in Russia and in India. In particular, Indian Audit Chamber regards construction of domestic carrier would be cheaper and its lifetime would be longer. In February 2009 India launched construction of its first aircraft carrier which is to be delivered to the Navy in 2014. Late November 2009 Indian Navy issued tender for an air group for new Indian carrier.
In November it got about that Indian authorities intended to purchase one more parcel of MiG-29K deck-based fighters from Russia. Particularly, they mentioned about additional order of 29 aircrafts. Sale contract of 16 MiG-29K/KUB was signed with India as early as 2004 under agreement of Admiral Gorshkov upgrade. First four fighters of that parcel were delivered to India early Dec 2009. Until India gets modernized aircraft carrier, the fighters will be attached to naval base at Goa.