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India-Pakistan
India could agree on extra $1.2 bln for Admiral Gorshkov
2009-08-09
MOSCOW, August 6 (RIA Novosti) - Russia is hoping to reach an agreement with India in August on an additional $1.2 billion to finalize the overhaul of the Admiral Gorshkov aircraft carrier for the Indian Navy, a Russian newspaper said on Thursday. The next round of talks to determine the final funding amount for the carrier's repair and modernization is due to take place in India within the next few days.

According to Nezavisimaya Gazeta newspaper, India has no alternative but to allocate the required $1.2 bln, despite recent objections from the government's accounting office, because the Indian Navy desperately needs to replace its INS Viraat, which, although currently operational, is now 50 years old.

Under the original $1.5 billion 2004 contract between Russia's state-run arms exporter Rosoboronexport and the Indian Navy, which includes delivery of MiG-29K Fulcrum carrier-based fighters, the work on the aircraft carrier was to have been completed in 2008. However, Russia later claimed it had underestimated the scale and the cost of the modernization, and asked for an additional $1.2 billion, which New Delhi said was "exorbitant."

After long-running delays and disputes, India offered in February 2008 to raise the refit costs for the aircraft carrier, docked at the Sevmash shipyard in northern Russia for the past 12 years, by up to $600 million. Russia said it was not satisfied with the proposed amount and the issue of the additional funding remains unresolved.

The Times of India newspaper said earlier that the deal had been criticized by India's Comptroller and Auditor General (CAG) that called the ship "junk" in a July report. "It can be seen that the Indian Navy was acquiring a second-hand refitted aircraft carrier that had half the life span of and was 60 percent more expensive that a new one," said the report.

However, Indian defense minister's aide Pallam Raji has recently said the Indian authorities are ready to consider Russia's proposal to raise the price of the deal by $1.2 bln.

Konstantin Makiyenko, deputy director of the Center for Strategic Analysis, a Moscow based think tank, has said that the Indian government will most likely agree on the new deal considering that China has launched an ambitious aircraft carrier construction program. He reiterated that India's only aircraft carrier - INS Viraat - will be decommissioned in the next few years, while construction of its own aircraft carrier would take much longer than the remaining overhaul of the Russian warship.

"Basically, India does not have an alternative but to agree [on the deal]," he said.

Russia has pledged to finish the Admiral Gorshkov's overhaul as soon as possible and deliver it to India in 2012 if the additional $1.2 bln funding is provided by New Delhi.

After modernization, the carrier will join the Indian Navy as INS Vikramaditya, and is expected to be seaworthy for 30 years. Admiral Gorshkov is a modified Kiev class aircraft carrier, originally named Baku. The ship was laid down in 1978 at the Nikolayev South shipyard in Ukraine, launched in 1982, and commissioned with the Soviet Navy in 1987. It was renamed after the collapse of the Soviet Union in 1991.

In 1994, following a boiler room explosion, the Admiral Gorshkov sat in dock for a year for repairs. After a brief return to service in 1995, she was finally withdrawn from service in 1996 and put up for sale.

The ship's displacement is 45,000 tons. It has maximum speed of 32 knots and an endurance of 13,500 nautical miles (25,000 km) at a cruising speed of 18 knots.
Posted by:Steve White

#7  But, Mike, I thought that carriers were obsolete, because one little missile could sink them. I mean, in Top Gun, they were afraid of airplanes that had Exocet missiles.
Seriously though, from what I understand, it may be difficult to actually sink a carrier. However, if you damage the flight deck badly enough, the carrier will have to return to port for repairs. And, oh by the way, won't have all that neat air cover she's used to.
Posted by: Rambler in Virginia   2009-08-09 22:00  

#6  Thank you Mike, I stand corrected.
Posted by: Steve White   2009-08-09 16:26  

#5  Steve,

Kitty Hawk was laid down in '56 - but her hull design is almost identical to that of Enterprise (CVN-65), and that of the ships that followed her. Any decent naval architect could get a very solid idea of how US CVs are built if he had a chance to run loose on her for a few days. And don't forget America (CV-66)- even though she was laid down in '61, she is considered Kitty Hawk class. Her sinking four years ago in a series of weapons tests was is so classified that the only pictures of it (and it took nearly 30 days of live fire and controlled shots to sink her) are of some debris floating on the surface.

Mike
Posted by: Mike Kozlowski   2009-08-09 15:26  

#4  India's Comptroller and Auditor General (CAG) that called the ship "junk" in a July report. "It can be seen that the Indian Navy was acquiring a second-hand refitted aircraft carrier that had half the life span of and was 60 percent more expensive that a new one," said the report.

I think that sums things up nicely. India's CAG seems to have his head screwed on straight.
Posted by: Secret Master    2009-08-09 14:14  

#3  India has no alternative but to allocate the required $1.2 bln, despite recent objections from the government's accounting office, because the Indian Navy desperately needs to replace its INS Viraat

Yeah, the Russians called that one right. Sink 3 billion into the thing, and then demand another 1.2 after they've already spent that. Is there a formula for calculating exactly how much to extort out of a customer, without making the customer think he's throwing good money after bad?
Posted by: gromky   2009-08-09 12:40  

#2  I wouldn't argue the baksheesh angle, that's a universal rule, isn't it.

But how much on the Kitty Hawk (for example) is so classified that forty years after her construction it can't be shared with the Indians? It's not like the world doesn't know how to build a carrier, it's just that no one has the skill-set we have.
Posted by: Steve White   2009-08-09 11:19  

#1  ...The idea of selling India one of our old CVs (which usually gets brought up here)probably is a non-starter. First, there is way too much classified about the design and construction of our supercarriers for us to turn them over to anybody. Secondly, one important reason these 'negotiations' over the Gorshkov have dragged out so long is that somebody on the Indian side is getting some serious baksheesh. Until that individual or individuals gets caught/retires/slips in the shower, this is going to go on for a bit yet.

Mike
Posted by: Mike Kozlowski   2009-08-09 10:21  

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