<Admiral Gorshkov: Gone with the wind?Josy Joseph New Delhi: Even as a high-powered Indian delegation began a crucial trip to Russia to assess the latter's demand for an increase of $1.2 billion in the Admiral Gorshkov contract price, Moscow sent out signals that it wouldn't mind scrapping the deal with India, and buy the aircraft carrier back for its own navy....The Russian aircraft carrier, bought by India in a $1.5 billion deal in 2004, is undergoing a refit in Russia. The entire contract had recently run into rough weather with the Russians demanding another $1.2 billion, saying the cost of refurbishing the aircraft carrier was much more than what they had originally assessed. In the original contract, signed on January 20, 2004, the Russians were to get $800 million for refurbishing the carrier, and the rest was for fighters, helicopters and the rest of the items....the government understood that there was some merit in the Russian argument, but $1.2 billion "looks exaggerated".
But now, adding a new twist to the ongoing standoff, Russian sources have been quoted by a local news agency as saying that they wouldn't mind buying back the carrier for the Russian Navy. ...Even as it shocked India with the demand for $1.2 billion extra for Gorshkov, the Russian side has also delayed the handing over of a nuclear submarine on lease to the Navy. The Akula class submarine was officially expected to be handed over to the Indian Navy in June this year, but it has been delayed without any clear explanation....India is in a trap. It has already paid over $500 million to the Russians [for the Gorshkov]. In fact, it was this Indian money that helped the Russians to reinvigorate the Sevmash shipyard, lying dormant since the Soviet Union collapsed.> http://news.indiainfo.com/2008/02/21/0802211318_admiral_gorshkov.html Even if India settles on the fighters, helicopters etc worth $400 million in lieu of its $500 million advance (at a 25% premium) , it is doubtful if the fighters would be able to operate from any other aircraft carrier. Incidentally, the training for these fighters is to be based at Dabolim which is already running out of Sea Harriers and/or their two-seater trainers. Goa needs to follow the outcome of this negotiation as it will have a bearing on the mission of the naval air station at Dabolim.