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Home / News / Russian Navy News

Delivery contract of Russian deck-based MiGs to India is evaluated as $1.5 bln

Delivery contract of Russian deck-based MiGs to India is evaluated as $1.5 bln 15.03.2010
Delivery contract of Russian deck-based MiGs to India is evaluated as $1.5 bln. Deliveries will be started in 2012. Totally, India intends to purchase 29 aircrafts of this type. Konstantin Makienko, deputy director of Research Center for Analysis, Strategy and Technology comments the transaction.

"Personally, I take a favorable view of this decision since the contract will bring money and work to Russian shipbuilding industry", underlined Mr. Makienko. He also informed that "the contract on Admiral Gorshkov had been signed on Jan 20, 2004". "According to this contract, Russia agreed to hand over decommissioned aircraft carrying cruiser Admiral Gorshkov to India at no expense. In addition, it was offered to repair the carrier and refit her for horizontal takeoff aircraft for $270 mln, since only jump-jet aircrafts were previously based on Admiral Gorshkov", said the expert. "These works were launched in 2004; however, by 2006-2007 it emerged that scope of work considerably exceeded the estimates. Moreover, long-term dollar downing and cost escalation in Russian economy had a great impact, too. It was offered to increase contract value; at last, after two years of protracted negotiations the parties have come to terms. This issue damping Russo-Indian military cooperation has been removed now, the crisis has gone and hopefully things will come right", concluded the analyst.

Presumably, MiGs will be based on aircraft carrying cruiser Admiral Gorshkov which is expected to be handed over in 2012.

Besides, Russia plans to construct 12 nuclear units in India within the framework of cooperation in the area of nuclear energy, said Sergei Kirienko, the head of Rosatom.

Russian Prime Minister Vladimir Putin affirmed today that Russia and India would develop cooperation in the area of civilian nuclear power. Present-day nuclear reactors offered by Russia to foreign partners [including India] are just the same as in Russia, pointed out Mr. Putin.

It was reported today that India which has already furnished two building plots for construction of nuclear power plants would probably furnish one more.

Source: Ekho Moskvy, photo: aircraft carrier Admiral Gorshkov (pavlonews.info)

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