Deadlock on Admiral Gorshkov persists: Antony

India and Russia are still to break the deadlock on Moscow's demand for hike in cost of the aircraft carrier Admiral Gorshkov and have not come to terms on the new price for the warship. Defence Minister AK Antony told the Rajya Sabha that the Russian side had submitted a revised master schedule indicating a delay in the project and an increase in the price for repair and re-equipping of the carrier.

"The process of examination of the scope and necessity for additional work projected by Russian side has been initiated," the minister said.

A high-level Russian delegation was here recently, but according to top government sources no settlement had yet been reached on the price hike. Under a contract worth $1.5 billion signed between Russia and India in 2003, Russia was to deliver the carrier along with its compliment of Mig-29K fighters in August last year.

But, just months short of the scheduled delivery, Moscow stunned New Delhi by asking for an upward revision  of price for the carrier to the tune of another $1.2 billion citing that the carrier needed lot of additional work and would have to undergo almost a year-long sea trials in Russian waters.

The government has set up a committee of high officials to vet the Russian demands and the new price escalation would have to be put up before the Union cabinet for fresh approval.

Gorshkov, according to new schedule submitted by Moscow, would now only be ready for delivery earliest by 2011. The government faced a number of queries on the delays of supply of weapon systems not only from Russia, but from other countries too.

To these, Antony said "delay in delivery of such equipment sometimes takes place due to various unforseen probelms irrespective of the source of acquisition". He said hurdles, if any, met during the execution of contract are resolved bilaterally at an appropriate level. The defence minister said that Defence Procurement policy of 2006 had provisions to streamline the procurement procedure and laid down a broad time frame for acquisitions.