George leads talks in Moscow

finalisation of the deal on Admiral Gorshkov (Project 1143.4), hanging for many years. ‘‘The Commission is finally to fix terms of a contract for the delivery of the heavy aircraft carrier Admiral Gorshkov, to India,’’ Itar-Tass news agency reported today, quoting an Indian diplomat.

Admiral Viktor Kravchenko, Chief of Russia’s Main Naval Headquarters told Itar-Tass that the carrier would become ‘‘the most powerful combatant ship of the Indian navy.’’ He said that during the course of upgradation at the Shevmash northern shipyards, the 44,000-tonne Kiev Class carrier is to be fitted with the new navigational and radar equipment and armed with anti-ship and anti-aircraft missile systems.

The two sides were scheduled to discuss ways to speed up licensed production of Su-30 MKI jets and 186 T-90C tanks in India and expedite supplies of spare parts for military equipment. Russia may also offer India upgradation of Russian T-72 tanks. Before Fernandes’ talks with Klebanov, Indian ambassador to Moscow, K Raghunath said that the Commission will approve the results of the deliberations of the two large working groups and several sub-groups.

Gorshkov price in focus

New Delhi: THE Admiral Gorshkov deal now hinges on Rs 200 crore (US $50 million) — the difference between the Indian and Russian price for retro-fitting the aircraft carrier along with two squadrons of the MiG 29K aircraft.

Linked to the deal is a clutch of military hardware, including two Akula class nuclear submarines, that Defence Minister George Fernandes will bring up for discussion with his Russian counterparts. If the price negotiations come through, the work on Gorshkov could start by middle of this year.

Sources say the Russians had initially asked for $700 million for the Kiev class aircraft carrier but apparently lowered the price to $650 million last year. Russian Trade and Industry Minister Illya Klebanov, who jointly heads the Inter-Government Commission on military technical cooperation with Fernandes, had made this offer to New Delhi last October. India wants to ink the deal at $600 million and the on-going negotiations in Moscow will focus on bridging the price gap.

During his six day trip to Russia, Fernandes will visit the Irkutsk industrial complex, which houses all major Russian aircraft manufacturers. The Russian government has asked six original spare part manufacturers to help Indians sort out the supply crisis dogging the MiG series.

Also on Fernandes’ agenda is a quick trip to Sakhalin.

He will have a look at the Sakhalin-I oil exploration project here, in which the ONGC (Videsh) has invested $1.7 billion. But the focus of the trip will be acquisition of Russian hardware. The deal includes two squadrons of the MiG 29K combat aircraft, as well as the addition of a hangar, hydraulic lifts and a ski-jump to the existing hull of Kiev-class carriers.

If the deal comes through, it will pave the way for the acquisition of the TU-22 M3I long range strategic bombers. Saikat Datta