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By VIVEK RAGHUVANSHI
Russia has agreed to slightly decrease its selling price for the aircraft carrier Admiral Gorshkov, raising hopes that the Indian Navy will finally acquire the ship.The two sides have been at stalemate over the carrier after Moscow demanded an increase of more than $1.2 billion above the contracted amount of $800 million reached in 2005.Indian Defence Ministry sources said the Russian decision to reduce the cost was reached during talks last month in Moscow between visiting Indian Defence Secretary Vijay Singh and senior Russian Defense Ministry officials.Although the decrease is described as marginal, it will enable the Indian government to claim a face-saving compromise, Indian Defence Ministry sources said. A final decision will take place by next month, the sources added.Indo-Russian defense ties have been on the decline for the past two years after Moscow demanded cost increases for contracted weaponry, including the Gorshkov.A Russian diplomat said that Moscow is concentrating on rebuilding its own defense forces and is aiming at sales to Iran, and as such has reduced its emphasis on the Indian market.Following the delay in the aircraft carrier, due in 2007-08, some Indian Navy planners have suggested scrapping the carrier and resorting to a fresh hunt overseas.
Russia has agreed to slightly decrease its selling price for the aircraft carrier Admiral Gorshkov, raising hopes that the Indian Navy will finally acquire the ship.The two sides have been at stalemate over the carrier after Moscow demanded an increase of more than $1.2 billion above the contracted amount of $800 million reached in 2005.Indian Defence Ministry sources said the Russian decision to reduce the cost was reached during talks last month in Moscow between visiting Indian Defence Secretary Vijay Singh and senior Russian Defense Ministry officials.Although the decrease is described as marginal, it will enable the Indian government to claim a face-saving compromise, Indian Defence Ministry sources said. A final decision will take place by next month, the sources added.Indo-Russian defense ties have been on the decline for the past two years after Moscow demanded cost increases for contracted weaponry, including the Gorshkov.A Russian diplomat said that Moscow is concentrating on rebuilding its own defense forces and is aiming at sales to Iran, and as such has reduced its emphasis on the Indian market.Following the delay in the aircraft carrier, due in 2007-08, some Indian Navy planners have suggested scrapping the carrier and resorting to a fresh hunt overseas.
10 comments:
to asian defnece
due in 2007-08, some Indian Navy planners have suggested scrapping the carrier and resorting to a fresh hunt overseas.
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which ship is available by the way as fresh hunt
even if its cost escalated by a billion dollars it will still be cheap at 2 billion dollars which is half the price of new ship and will pay off its 2 billion price because it will be used for next 40 years
india has projected 4-5 billion for its ADS being built at cochin and delays are certain for sure
now a 24000 ton san antonio class ship cost over 2 billion dollars
and how can this ship could cost less than a billion dollars
there was price difference of 400 million US bucks between P8I and A319 based MPA
P8I comes at 2.2 billion +various obligations and end user agreement
and EADS offered same for 1.8 billion +no obligation or end user agreement
now 400 million is no small money and if india can pay this then india should have no problem for price hike for gorky
where was our ADMIRAL in this deal when he could save 400 million for nation and why he did not shout at govt.
To Anon@June 10, 2009 4:54 PM:
Stop making ignorant comments about things you dont understand. If money is all that matters we could have bought second hand P3 like Pakistan. We are still purchasing the base variant of P8. There is still a $400 million iterative variant available which will also be available to us as an upgrade package.
Our Admiral has lot more brains than semi-educated people like you.
Even though I would rather have a look at the interiour of this ship, it must be admitted that the Russians basically rebuild the whole thing, so 2 billion $ are more than justified. If they could be accused of anything, then it would be about the initial offer which was completely out of touch with reality.
But then again the Indians would not have to safe face if they would have spend some thought on the whole procurement in the first place.
Para is right with rising cost of materials and cost of labour worldwide 2Billion $ for a carrier is justified given the fact that it can be made available in near future. No alternative ship is currently available for sale to provide india with capability that Gorshkov can provide and even if something similar have been available it would have cost India a lot more then what Russians are asking. Few Indians did try to point out toward retiring USN’s super carrier but any such idea was rejected by the US.
Now as far as MPA issue is concerned you can compare a paper project with one that has active support and funding from USN. P-8I won the order because it ensures that India won’t have to suffer from the development problems like cost overruns and delays in delivery. A-319 MPA would have a development risk that india didn’t wanted so they opted for less risky option of P-8I
to asian defnece and anon at June 10, 2009 9:07 PM
Our Admiral has lot more brains than semi-educated people like you
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we may be semi eductated so what and sometimes even a uneducated person can do what a fully educated can't
according to u if money doesn't matter then why admiral was shouting for price hike for gorshkov????
now PARA understand this and same thing u can't understand till now
price hike is more than justified.
to asian defence
P-8I won the order because it ensures that India won’t have to suffer from the development problems like cost overruns and delays in delivery. A-319 MPA would have a development risk that india didn’t wanted so they opted for less risky option of P-8I
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why japan left this P8 and opted for kawasaki P1 MPA
because the development cost of P8 is more than the development cost of both kawasaki P1 AND KAWASAKI CX
and kawasaki P1 is better than P8
to para and asian defnece
its not easy to refurbish this thing and it might have been really tough to convert it into carrier and build 14 degree ski jump and rebuild whole ship again in inside
now i think the price increase 1.2 billion out of this price 500 million supposed to be spent on 16 months sea trials
and i think our govt is at real fault and dragged the talks for this ship from 1996 to 2004,and this is really too long and frustating
and if our govt had done that in 1996-7 it might have cost us much less than a billion dollars becoz russia wasnot in good position at that time and russian could have accepted low price then
but today reality is different and the prices of materials are sky high so can't even complain for that
@AD:
Well the purchase of a CVN would never have been a seriously good option in my opinion. The whole ToT- and classified information-issues aside, does India have proper installations to refuel such a vessel? They could of course put up some sort of contract for refueling in the US or just use up the nuclear fuel the ship has left. Still proper maintenance is needed and cost plus safety procedures would be quite grave issues and India would have to spend extra money to operate a nuclear vessel in contrast to a carrier with conventional propulsion. Since India also does not plan to build nuclear carriers itself (which is a good decision), these investments would offer no return in the long term.
What India needs, are affordable assets. For the same reason I disprove of the purchase of the Trenton LPD. Granted, India gets some knowledge and training in how to use such a vessel, but I think, the maintenance bills might not be fun to look at.
to para
that old kitty hawk was 50 year old and that carrier did not employ nucler propulsion but diesel engines
and if india had bought that ship and that too at hefty price most of the moeny had to be spent on operating one ship only
compared to kitty hawk groshkov is almost new and employing all new systems so much cheaper to operate and is smaller than kitty hawk
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