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K.V. Prasad
NEW DELHI: India is all set to finalise the price tag of aircraft carrier INS Vikramaditya (Admiral Gorshkov), which would be closer to the revised demand made by Russia at $2.9 billion.Authoritative sources in the Ministry of Defence say the figure is likely to be finalised next week when negotiators end discussions. The Russian negotiators arrived here on July 10 and originally intended to stay till July 17.The team has conveyed that the cost had been calculated as per the standards specified by its government and there was little room to de-escalate the cost, revised from its original price of $1.5 billion. This figure too had been later changed to $2.2 billion.After the recent visit of Defence Secretary Vijay Singh, New Delhi was hopeful that the price would be closer to $2.2 billion; however, over the past one week, negotiations had moved in a direction that showed it would be closer to the re-revised demand, the sources said.“Eventually, it must be remembered that this is not a commercial negotiation between a buyer and a seller but a government-to-government engagement. Yet, the negotiations have been arduous,” the sources said. As per the 2004 contract, the aircraft carrier that is undergoing repairs and refit at the Sevmash shipyard, was to have been delivered last year, but it is now expected to be handed over by the end of 2012. The Russian side was told during Mr. Singh’s visit that the deadline would have to be adhered to. In a related development, Russian President Dmitry Medvedev was quoted as telling the builders, during his visit to the shipyard early this month, to ensure delivery of the aircraft carrier on time.India has so far paid $602 million as advance to Russia, with a bulk of that amount being released this year.Meanwhile, Director of National Maritime Foundation C. Uday Bhaskar told The Hindu, that the deal was important for India-Russia defence cooperation.
NEW DELHI: India is all set to finalise the price tag of aircraft carrier INS Vikramaditya (Admiral Gorshkov), which would be closer to the revised demand made by Russia at $2.9 billion.Authoritative sources in the Ministry of Defence say the figure is likely to be finalised next week when negotiators end discussions. The Russian negotiators arrived here on July 10 and originally intended to stay till July 17.The team has conveyed that the cost had been calculated as per the standards specified by its government and there was little room to de-escalate the cost, revised from its original price of $1.5 billion. This figure too had been later changed to $2.2 billion.After the recent visit of Defence Secretary Vijay Singh, New Delhi was hopeful that the price would be closer to $2.2 billion; however, over the past one week, negotiations had moved in a direction that showed it would be closer to the re-revised demand, the sources said.“Eventually, it must be remembered that this is not a commercial negotiation between a buyer and a seller but a government-to-government engagement. Yet, the negotiations have been arduous,” the sources said. As per the 2004 contract, the aircraft carrier that is undergoing repairs and refit at the Sevmash shipyard, was to have been delivered last year, but it is now expected to be handed over by the end of 2012. The Russian side was told during Mr. Singh’s visit that the deadline would have to be adhered to. In a related development, Russian President Dmitry Medvedev was quoted as telling the builders, during his visit to the shipyard early this month, to ensure delivery of the aircraft carrier on time.India has so far paid $602 million as advance to Russia, with a bulk of that amount being released this year.Meanwhile, Director of National Maritime Foundation C. Uday Bhaskar told The Hindu, that the deal was important for India-Russia defence cooperation.
18 comments:
That's about the cost of two Wasp Class LHD (which is about $1.4 billion each)....
Any news on the aviation complement?
revised from its original price of $1.5 billion.
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this 1.5 billion included price of mig29k and 6 helicopters and its now
2.9 billion which includes mig29k and 6 helicopters so the price of ship is 2.1 billion dollars which is bit more than 2 times the original price
That's about the cost of two Wasp Class LHD (which is about $1.4 billion each)....
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well today new san diego class cost 2 billion so a new wasp class with 40000 tons will cost no less than 4 billion
Considering the fact that Gorshkov is a refurbished (dating back 3 decades), small-deck carrier, and the fact that original agreed-to price was half of what it now costs - $2.9 billion [without the aviation asset] is bit expensive.
Considering the fact that Gorshkov is a refurbished (dating back 3 decades), small-deck carrier, and the fact that original agreed-to price was half of what it now costs - $2.9 billion [without the aviation asset] is bit expensiv
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from where u got this hollow infomation?
mig29k and 6 helicopters are included in this 2.9 billion
Regardless
"...This brings the total price requested by the Russians to $2.9 billion, more than three times the originally-contracted price. India claims it could purchase a new carrier from the U.K. or France for $2.9 billion and probably get it delivered as quickly as the Russians are proposing...."
It's expensive, in proportion to the capability it can bring, even by Western standard.
...This brings the total price requested by the Russians to $2.9 billion, more than three times the originally-contracted price. India claims it could purchase a new carrier from the U.K. or France for $2.9 billion and probably get it delivered as quickly as the Russians are proposing...."
It's expensive, in proportion to the capability it can bring, even by Western standard.
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again hollaw information
how its more than three times the original price when initial price was 1.5 billion includes mig29k and helicopters
and now its 2.9 billion which includes mig29k and helicopters so its less than twice the initial price
and how french and british can build a new aircraft carrier in 2.9 billion when russian price is 2.1 billion for old carrier.
Compared to other conventional carriers in operation, how much do you think Gorshkov should cost?
MiG29K* is, in my opinion, not much more than "chairs that come with the desk" kind of add-on. It's unproven (ie barely ready for service), to say the least.
India should have asked the Russian to refurbish the superstructure and contract the West for electronics, armament and aviation. That would bring out Gorshkov's true potential.
How long do you think Gorshkov will remain in Indian service? My guess: barely 2 decades.
Just for comparison, [nuclear] Charlie de Gaullie costs roughly 3 billion Euro. That makes Gorshkov's 2.9 sound even more like a calculated extortion figure, doesn't it?
* Paid for at $800 million by half of the $1.6 billion "finalizing" tab, giving it roughly $66 million per jet.
Russian wants to match the West in cost (profit) but barely in capability or reliability.
In any case, it's fascinating how the two emerging regional powers (China & India) go about building their carrier fleets.
a reasonable comparison, i suppose....
http://www.sinodefence.com/research/aircraft-carrier/China_Aircraft_Carrier_Ambition.pdf
It's expensive, in proportion to the capability it can bring, even by Western standard.
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So you can find us a cheaper carrier. That would be great. We will give you 10% in commission. Fetch now!
China purchased two of the four Kiev class carriers (of which Gorshkov belongs) at roughly $20 million each. Kiev class aircraft carrier is a 1970's design, after all.
Brazil purchased the then-retiring French Foch (more vintage than Kiev) at a bargain price of $12 million in 2000, no aircraft included. NAe now flies both fixed-wing and rotary aircraft off São Paulo (A12)'s CATOBAR flight deck.
^^ Gorshkov by that measure was for free. Of course these price tags don't include the cost of refurbishment and modernisation.
Russians would find it hard to justify the $2.9 billion bill for the refurbishment, modernization and rebuild effort.
Even without the aviation asset, it's still a solid $2 billion bill for such effort, don't you think? I have difficulty finding an article that properly explains the astronomical cost overrun.
Anyway, it's nice chatting with you, by the way. My name is Robert; i'm a RAND analyst (perhaps that explains why i'm so curious about project [mis]management - lol). Cheer~
Even without the aviation asset, it's still a solid $2 billion bill for such effort, don't you think? I have difficulty finding an article that properly explains the astronomical cost overrun.
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what would have been price of 3 6000 tons destroyers in 2004 roughly over 2 billion heck a 5000 tons shivalik class cost 650 million
and don't u think work done on gorshkov is more than 3 destroyers or 3 shivaliks so its 2.1 billion for gorshkov and rest for aviation assets
don't forget gorshkov will have 8 kashtans with 16 30mm cannon guns and 192 short range SAMs
Tonnage is not really the determinant of the worth for vintage ship or weapon system. The integrity of the superstructure and the modification potential (for electronics, weapon systems and in Kiev's case, aviation asset) are. The first translates to how long can ship can last (and the cost of a total rebuild) while the later gives us an estimate of its tactical value.
The results of Ukrainian auctions gave us a rough estimate of the shapes the four Kiev's carriers were in. Granted, they were civilian investors, not naval officers, who participated in the auctions.
Shivalik class frigate is considered a modern warship in production; it's a totally different equation.
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