Indo-Asian News Service
New Delhi, July 30 (IANS) Indian Navy Thursday contested an audit report on the exorbitant pricing and low capability of a Russian aircraft carrier it has purchased, saying that the deal had been concluded in all “seriousness”.”You tell me, if one can get me an aircraft carrier for less than $2 billion I will sign a cheque right here,” Indian Navy chief Admiral Sureesh Mehta retorted when asked to comment on a report of the Comptroller and Auditor General (CAG) report questioning the purchase of the Admiral Gorshkov.

The original deal, signed in 2004, was for India to pay $1.5 billion for the vessel, mothballed since a devastating fire in 1995. Of this, $948 million was to be spent on refitting the 45,000 tonne vessel and the balance on the MiG-29 combat jets and Kamov anti-submarine warfare helicopters that would be deployed on the ship.

Since 2007, however, Russia has steadily been asking for more money, saying the extent of repairs to the vessel had been grossly underestimated. Various reports say Russia is now asking for between $2.2 billion and $2.9 billion.

Protracted negotiations, even at the level of the Indian and Russian defence ministers have so far failed to resolve the impasse.

As for the CAG’s adverse comments on the low capability of the carrier, Mehta said: “I can assure you that there is nothing of this sort. The navy has looked at this ship for long. Since the 1990s we have been looking at it….The deal has been done in extreme seriousness.”

The issue had figured in parliament Wednesday, with Defence Minister A.K. Antony saying that a fresh contract for the carrier would be signed after verifying the CAG’s findings.

“Russia has demanded a substantial increase. The negotiations on this so far have been inconclusive. Before we take a final decision, we will verify everything (said against the deal), including the report of the CAG,” Antony had said during question hour in the Rajya Sabha.

According to the CAG report, the objective of inducting the Gorshkov in time to fill the gap’s in the navy’s capabilities had not been achieved due to the delay in the delivery of the warship.

Originally scheduled to be delivered in 2008, this has now been pushed back to 2012.

By the time the aircraft carrier was delivered, the report said, it was not clear how the navy would be able to provide an “adequate” battle group to the vessel.

According to the CAG’s estimates, the indigenous design and construction of a new carrier would cost $1.145 billion. It would take two years to design, eight years to construct and would have a lifespan of 40 years. Against this, the Gorshkov would have an operational span of only 20 years.