Fresh contract on Gorshkov in July

India and Russia seem to be moving closer to a final agreement on the Gorshkov aircraft carrier price hike issue with a new contract,detailing an increase in costs to almost 2.2 billion,expected to be signed in July. A top defence official said an end to the price deadlock was near and the final contract will ensure that the carrier is delivered to India by 2012.

He said last week India paid an additional 102 million to Russia to ensure that work on the carrier does not slowdown while price re-negotiations are going on. With this,India has paid a total of 602 million for the aircraft carrier that is being refurbished at the Sevmash shipyard in Russia since 2004. India has purchased the carrier for 964 million with the hull being given for free and the costs going only towards refurbishing of the warship.

Senior defence officials,including Defence Secretary Vijay Singh,visited Moscow last week to work on an agreement.

The senior official said a decision to order additional MiG 29 K fighters has been put on hold till the carrier is delivered.