India approves hiked price tag for Russia aircraft carrier

The fresh acquiring price of Russian aircraft carrier(AC) Admiral Gorshkov was approved at 2.35 billion U.S. dollars by the Indian government on Wednesday, said an official of the Indian Defense Ministry.

The Cabinet Committee on Security approved the new deal a day ahead of Russian Premier Vladimir Putin's visit to India, the official said.

India and Russia are expected to sign a new agreement on the AC during Putin's two days'visit.

The original cost of the AC agreement signed in 2004 was 0. 974 billion dollars for the modification, while the AC body itself being offered free of cost.

However, the Russian side demanded the price increasing from 0.974 billion dollars to 2.9 billion dollars, citing rising oil price and other reasons. This sparked controversy and denials in India.

Finally, the Indian side agreed to pay a total of 2.3 billion dollars with a request for some additional equipment, and the Russian side agreed to it.

Admiral Gorshkov, with a displacement of about 40,000 tons, is being modified with the modern operational systems in Russia. It has the capacity of carrying 30 aircraft including advanced fighters MiG-29K ,and its delivery to Indian navy is scheduled in 2012.

Source: Xinhua