India and Russia sign defence deal

NEW DELHI: India agreed to pay $2.33 billion more for the upgrade of aircraft carrier Admiral Gorshkov, re-christened INS Vikramaditya, and signed a $1.5 billion contract to buy 29 MiG-29K naval fighter jets.The two deals were signed by the Ministry of Defence and Russian officials accompanying Prime Minister Vladimir Putin, who arrived in New Delhi on Thursday night.New Delhi and Moscow negotiated military contracts, including joint production of multi-role transport aircraft and a fifth generation combat jet. Russia will also deliver nuclear submarine Nerpa-Akula on lease for ten years.The additional contract for INS Vikramaditya was signed after the two sides settled on the new price of the carrier being reconstructed in Russia.The original contract was finalised in 2004 under which Russia was to deliver the ship for around $900 million.But over the years, Russia demanded more money and $2.33 billion was settled upon.India has also placed an order for 29 more MiG-29K naval jets worth $1.5 billion.The Navy had bought 16 of these aircraft in 2004. Russian officials were hopeful that they would be able to deliver new MiG-29Ks from 2012.The Admiral Gorshkov is a modified Kiev-class aircraft carrier, originally named Baku. The ship was laid down in 1978 at the Nikolayev South shipyard in Ukraine, launched in 1982, and commissioned with the Soviet Navy in 1987.It was renamed after the collapse of the Soviet Union in 1991.