Click to play videoNew Delhi: An ongoing price dispute between New Delhi and Moscow is threatening to cost India the much-hyped Gorshkov deal.
Reports quoting unnamed Russian defence sources say Moscow wants to cancel its disputed contract with India for refurbishing the Gorshkov aircraft carrier. The report says Russian Navy now wants the vessel for its own use.
The Russian reaction coincides with Indian Defence Secretary Vijay Singh's visit to Moscow. Singh is there to discuss the price dispute over the Gorshkov.
The Indian delegation, led by Vijay Singh, will also carry out physical verification of the additional refit work needed to be done on the carrier as claimed by Moscow.
The 45,000-tonne displacement carrier was to delivered to India by August this year as per a $1.5 billion contract signed in 2004, but Russia stunned India in November last by demanding $1.2 billion more for refitting and other works. The new condition by Russia meant a delay of up to four years.
"Now this issue is under negotiations and if we fail to reach a compromise with India on the contract and its price, the aircraft carrier could be bought by Russian Defence Ministry," an unnamed defence industry source was quoted as saying by RBC business newswire.
Neither the Indian Embassy nor Russian signatory of the RosOboronExport have made any announcement in this regard.
Delhi termed it a blackmailing tactic by Moscow. Indian Defence Ministry official say they believe Russia could be seeking to pressure India into accepting its terms on the Gorshkov deal
Under the initial deal, the hull of the Soviet-built aircraft carrier Baku, re-christened 'Admiral of the Fleet Gorshkov' after the Soviet collapse, was transferred to the Indian Navy for free of cost with a condition of its modernisation at Russian shipyard and equipping it with MiG-29K fighters.
During his recent visit to India last week, Russian Prime Minister Viktor A Zubkov is understood to have discussed the issue with Prime Minister Manmohan Singh amid reports that New Delhi is willing to cough up upto $600 million extra.
(With PTI inputs)
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