India, Russia sign $500 mn deal for constructing 2 warships for Indian Navy

India and Russia Tuesday signed a $500 million deal for construction of two warships in Goa for the Indian Navy under the technology transfer model, officials said.

They said the agreement for the project was signed between defence PSU Goa Shipyard Ltd (GSL) and Russia's state-run defence major Rosoboronexport under the government-to-government framework for defence cooperation.

Under the deal, Russia will provide design, technology and some materials to GSL for construction of the ships in India.

"We have finalised a $500 million deal with Russia for construction of two warships in Goa," CMD of GSL Shekhar Mital told PTI.

He said construction of the ships will begin in 2020 and the first one will be ready for induction in 2026 while second one will be ready by 2027.