India's finance ministry has for the second time rejected a proposal from the nation's defence ministry to approve an additional $1.2 billion in funds to complete a retrofit project to the decommissioned Russian aircraft carrier Admiral Gorshkov.
Moscow had originally agreed to deliver the modernised vessel for $1.5 billion, but demanded the additional payment after citing factors including an underestimation of the level of work required at its Sevmash shipbuilding yard.
India, which has already paid Russia two-thirds of the original programme cost, has made no further payments since January 2007, and the 44,500t carrier's expected delivery date has slipped from 2009 until at least 2012. The finance ministry's latest decision also stemmed from a request to allocate $60 million to perform sea trials of the refurbished vessel during 2011.
The Indian navy has ordered 12 RSK MiG-29K fighters and four MiG-29KUB trainers to operate from the ex-Russian navy ship.
Source: Flight International
