Government approves revised cost of $2.33 billion for aircraft carrier Gorshkov

Government today said it has agreed to pay $2.33 billion as the revised cost of aircraft carrier Admiral Gorshkov and the warship is expected to arrive in India by December 2012.
    
"The revised cost of $2.33 billion has been approved by the government. Prices for the work to be carried out under the revised contracts and agreements are fixed," defence minister AK Antony said in reply to a Lok Sabha query.
    
He said the Russian side had submitted a revised Master Schedule indicating a delay in delivery of the warship and increase in its price after the deal was signed in 2004 for $974 million.
    
On the delivery of the carrier ship, he said, "The aircraft carrier was originally scheduled to be delivered in August 2008. The ship's delivery is re-scheduled for December, 2012."
    
He also said India has signed Inter Governmental Agreements (IGA) with Russia for co-development and co-production for Multi Role Transport Aircraft (MTA) on November 12, 2007 and for a Prospective Multi Role Fighter Aircraft (PMF) on October 18, 2007.
    
"The percentage share of investment by the Indian side towards the development will be 50% each for both aircraft," Antony added.
    
The Minister said both the aircraft were expected to be inducted into the IAF during the 13th Plan Period.