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India, Russia meet for aircraft carrier talks


By Vivek Raghuvanshi - Staff writer
Posted : Monday Mar 17, 2008 12:29:18 EDT

NEW DELHI — India and Russia will attempt another round of negotiations to resolve the stalemate over the price of the Russian aircraft carrier Admiral Gorshkov during the March 13-19 visit of Adm. Sureesh Mehta, Indian navy chief, to Moscow.

Indian Defense Ministry sources said the chief is carrying a package that includes a substantial hike in the price of refitting the carrier, an offer they hope will resolve the stalemate on the price issue.

The Russians last year demanded a price increase of more than $600 million to refit the carrier — this was above the already agreed cost of about $650 million. While the Indian government resisted the higher cost, the Defense Ministry softened its stance as the Indian navy insisted on getting the aircraft carrier in the next five years.

Mehta will also inspect the assembly of MiG-29K aircraft, 16 of which have been contracted for the aircraft carrier by the Indian navy for $640 million. Mehta is also scheduled to visit the Sevmash shipyard in Russia, where the aircraft carrier is undergoing refit.

Indian Defence Ministry officials hope the visit of the Navy chief will improve defense ties between India and Russia.

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