Friday, February 29, 2008

Russia and India agree about aircraft carrier price

Russia and India have agreed to increase refit costs for the Admiral Gorshkov aircraft carrier, currently undergoing reconstruction at a shipyard in Severodvinsk, Arkangelsk oblast.

The costs of modernizing the aircraft carrier will be announced in late March the Indian defense secretary Vijay Singh said. Vijay Singh, who has just returned from inspecting the Admiral Gorshkov, berthed at the Sevmash shipyard in north Russia for the last 12 years, said there would be "a substantial increase" in the "reworked estimate" for the modernization work on the carrier. "It should be completed by mid-2010. After that, it will undergo 18 months of extensive sea trials by the Russian navy to ensure all systems are working properly," he said. The defense secretary did not mention any figures but New Delhi is willing to pay another $600-800 million for the 44,570-tonne aircraft carrier. India contracted the $1.5 billion Admiral Gorshkov for its navy in 2004. Moscow has since demanded an additional $1.2 billion, which New Delhi replied was "exorbitant."

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