Gorshkov: Russia says cost escalation is ‘inescapable’

Russia has said that it is “embarrassed” over the delay in the Gorshkov aircraft carrier project but is firm that a substantial...

Russia has said that it is “embarrassed” over the delay in the Gorshkov aircraft carrier project but is firm that a substantial increase from the original price contract is “inescapable”.

Defence Secretary Vijay Singh, who returned after inspecting the aircraft carrier at the Sevmarsh shipyard, said the process of revaluating the cost of the warship by a specialised team would conclude in March. Singh said there would be a “substantial increase” in the price — the original contract for the ship and its complement of MiG 29 K fighters was for $1.2 billion — but the Russian shipyard is confident of completing the project.

Russian Industry and Energy Minister Victor Khristenko assured Singh in Moscow that the “project is of the highest importance” to Russia but the price escalation was “inescapable”.

Story continues below this ad

Moscow had earlier stunned Delhi by asking for an additional $1.2 billion to complete the carrier’s refit. Sources say the final escalation agreeable to India would be between $600-800 million. However, the Cabinet Committee on Security will need to approve the increase in price.

Meanwhile, to accelerate the pace of work on the carrier, India has offered to send 500 trained personnel from its shipyards to Sevmash to join the 1,200 Russian workers in executing the refit.

“The warship requires installation of new turbines, boilers, 2,500 km of cabling and strengthening of its flight deck for operations by fighters as part of the refit,” Singh told reporters, adding the “modified contract would be signed by March-end after teams from Russia visit here to finalise it”.

While Russia has assured that the ship would be ready by mid-2010, it will then need to undergo extensive sea trials lasting at least 18 months. “The sea trials would include sailing to great distances and operating fighters from the deck,” Singh said. India is also working on a proposal to reduce the time for sea trials and bring down its related costs. The Navy is also keen to send its personnel onboard the ship during the trials to give them experience in handing the carrier.

Story continues below this ad

Singh made it clear that contrary to some reports, there was no question of abandoning the project midway. Sources also confirmed that the soon-to-be-retired American Supercarrier USS Kitty Hawk was “neither offered nor required” by India.