Russians want another 700 million dollars for Gorshkov
This makes the deal worth $2.9 billion, which is almost thrice the original amount agreed upon when the agreement was first reached on January 29, 2004 by the NDA Government for $974 million. While India did expect cost-escalation to the tune of $350-400 million in the course of refurbishing the old ship, Russia stunned India by proposing a $1.2 billion hike in November 2007 that pushed up the cost to $2.2 billion.
It took several rounds of official-level talks and then the visit by Defence Minister A K Antony to Moscow for the UPA government to consider Russia’s request. Finally, the Cabinet Committee on Security gave its approval in December, around the time Russian President Dmitry Medvedev was visiting India, to renegotiate the Gorshkov deal in view of the cost escalation.
To read the full article, click here..
To read the ePaper, visit: http://epaper.indianexpress.com
Labels: A K Antony, Gorshkov, Gorshkov deal, india, Moscow, NDA Government, New Delhi, old ship, Russian President Dmitry Medvedev, Russians

