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Home / News / Russian Navy News

Putin to bring $4 bln contracts to India

Putin to bring $4 bln contracts to India 04.03.2010
Three defense contracts totaling in $4 bln may be signed during visit of Vladimir Putin, Russian Prime Minister to India in March 11-12, 2010. Contracts have been prepared and deal with modernization of aircraft carrier Admiral Gorshkov, deck-based fighters MiG-29K/KUB and military transport aircraft MTA, informs Vedomosti referring to sources in Russian defense ministry and Rosoboronexport.

In particular, collateral contract on Admiral Gorshkov upgrade will be signed during Putin's visit. Contract value will make $2.35 bln. This document will be signed between Rosoboronexport and Indian Ministry of Defense.

First agreement on the carrier which will be named Vikramaditya in Indian Navy was signed in 2004. It provided $970 mln for modernization; however, Russia reviewed cost of works, having increased it almost on $2 bln. That step discontented India. After signing of contract, upgrade cost of the carrier will be increased up to $1.4 bln.

In addition, it is planned to sign delivery contract on 29 deck-based fighters MiG-29K/KUB for India; in prospect, part of them will be based on Vikramaditya. Contract value will make $1.2 bln. Presumably, Russian aircraft carrier will be delivered to India in 2013, later than fighters. They will be attached to naval base in Goa until the carrier's commission.

Another contract will be signed between Russian United Aircraft Engineering Corporation (UAEC) and Indian company Hindustan Aeronautics. The contract is related to joint development of military transport aircraft MTA (Il-214). The parties have been negotiating on the project since early 2000-ies. At first they considered possibility to finance the project in discharge of Indian debt to Russia, but finally the countries agreed to invest $300 mln each.

Russia and India have been actively cooperating in military industry in resent years. Namely, India-based joint venture company BrahMos is engaged in missile development. Besides, the countries negotiate on contract to develop 5-gen fighter for Indian Navy on the basis of Russian PAK FA. On March 3, 2010 it was reported of India's plans to purchase additional 40 fighters Su-30MKI.

Source: Lenta.Ru, photo: aircraft carrier Vikramaditya (military-today.com)

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