Moscow, Nov 14: Russia has demanded an additional
USD 2 billion from India for the completion of Admiral Gorshkov
aircraft carrier`s refit and modernisation failing which it
would be inducted by the Russian navy.
Russian Defence Ministry said that if India failed to
foot the bill, the carrier could be given to the Russian Navy.
"If India does not pay up, we will keep the aircraft
carrier," a ministry official was quoted as saying by the RIA
Novosti.
Earlier this year Indian Defence Secretary and Naval
Chief had visited Severodvinsk in the north of the country
where the ship is undergoing re-fit. India is willing to pay
extra USD 600 million, which the shipyard says is not
sufficient, according to local media reports.
"Construction of the ship will be completed in 2010 and
tests will start in 2011, while in 2012 it will be transferred
to the Indian Navy," Sevmash shipyard Chief Nikolai Kalistratov
was quoted as saying by RIA Novosti.
He underscored that the vessel, delivery of which has
already delayed, would only be handed over if New Delhi
provided sufficient funding to complete the refit.
Another shipyard executive quoted by the agency said
the market dictated that India should pay USD 2 billion more
over and above the original cost of USD 750 million stipulated
in the deal signed in January 2004.
"The market price of such an aircraft carrier varies
between USD 3 billion to USD 4 billion. The ongoing maintenance
and upgrade makes up 60-70 percent of the new carrier`s cost.
This is about USD 2 billion," Deputy General Director Sergei
Novoselov of the shipyard said.
Bureau Report
