India, Russia reach broad accord on Gorshkov price

Last Updated: Sunday, December 6, 2009 - 17:31

Moscow: India and Russia have reached a broad
agreement to break the logjam over the protracted price
renegotiation over the Admiral Gorshkov aircraft carrier deal,
official sources said on Sunday.

Sources said the general agreement being worked out is to
the mutual satisfaction of the two countries, who have been
unable to attain a finality on the deal after India decided to
buy the aircraft carrier re-christened as INS Vikramaditya.

Sources indicated that the deal may no longer be a
festering sour in bilateral relations.

Sources, however, said any pact in this regard is
unlikely to be signed after Prime Minister Manmohan Singh`s
summit talks with Russian President Dmitry Medvedev tomorrow
during his official visit to Russia beginning today.

Ahead of the visit, the Prime Minister voiced confidence
of finding a "practical solution" to resolve the problem
dogging the deal.

Navy Chief Admiral Nirmal Verma said earlier this week
that the protracted price renegotiation for the Admiral
Gorshkov aircraft carrier is in final stages but refused to
set a deadline for clinching the deal.

"We are in the final stages. Fourth round of talks on
fresh price is going on at present to fix the tasks needed on
Gorshkov and the costs," Verma had said when asked if
negotiations would be over before the Prime Minister`s visit.
Verma had said India is working to get the delivery of
the Admiral Gorshkov aircraft carrier aircraft carrier by
2012.

India had bought the warship in 2004 for USD 974 million,
but Russian shipyard Sevmash hiked the price twice since 2007
and currently demands an additional USD 2.9 billion.

PTI



First Published: Sunday, December 6, 2009 - 17:31

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