Indian Military

Contracts and supplementary agreements comprising repair and re-equipping, logistic supports, training, etc were concluded with Russian side for acquisition of the aircraft carrier, ex-Admiral Gorshkov, in January 2004 at a cost of US Dollars 974 million. The Russian side submitted a revised Master Schedule indicating a delay in the project and an increase in price for repair and re-equipping of theaircraft carrier, due to increase in scope of work not originally envisaged.

The Government approved the proposal for conducting negotiations with the Russian side for finalizing a revised Repair and Re-equipping Contract and other related contracts/agreements affected due to delay in the project and Additional Works projected. The negotiations have since been concluded by the Contract Negotiation Committee (CNC).

The revised cost of USD 2,330 million has been approved by the Government. Prices for the works to be carried out under the revised contracts/agreements are fixed. The aircraft carrier was originally scheduled to be delivered in August 2008. The ship’s delivery is re-scheduled to December, 2012. Re-scheduling of the ship’s delivery and revision in its cost were necessitated due to emergence of Additional Works projected, detailed agreed scope of trials, etc.

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Manish Tewari and others in Lok Sabha today.

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