Indian Navy agrees to increased costs of Russian aircraft carrier

Indian Navy agreed with the increased costs for the aircraft carrier 'Admiral Gorshkov'.

Head of the Indian Navy, Admiral Sureesh Mehta, admits that the higher costs for the vessel will be 'inevitable'. Mr. Mehta had earlier refused the Russian demand for a refit of the contract conditions, which were agreed upon in 2004. The costs linked with the extensive reconstruction of the vessel have become far higher than anticipated. The Sevmash shipyard also announced that it would not be able to complete the vessel in line with the original time schedule. The 'Admiral Gorshkov' as it is called in India, was originally to be sold together with 16 MIG-29K fighter jets and six 'Kamov' helicopters to India for US$1.5 billion. It is now expected that the vessel will be completed by mid-2010. After that, it will undergo 18 months of extensive sea testing by the Russian Navy to ensure all systems are working properly. The Indian Navy expects to take over the ship in early 2012. The defence ministry does not mention any figures, but New Delhi is willing to pay another US$$600-800 million for the 44,570-tonne aircraft carrier.
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