India, Russia due for big upgrade in bilateral relations
11 Mar 2010
New Delhi: With Russian premier Vladimir Putin headed to India for a crucial meet, the government has cleared a slew of defence contracts and agreements that are likely to be signed later this week. 
Russian premier Vladimir Putin
Putin's foreign policy aide, Yuri Ushakov, told reporters that Russia expects the "signing of 14-15 agreements after the talks and contracts worth over $10 billion" during the prime minister's two-day visit. The agreements will be related to both the civil and military sectors.
It is learnt that the Cabinet Committee on Security (CCS) on Wednesday cleared a reworked $2.34-billion contract for the refit of the Adm Gorshkov/INS Vikramaditya aircraft carrier. The contentious contract was cleared after two years of torturous negotiations. The new contract, which will be signed during Putin's visit, will firmly peg the price of the refit programme and also ensure that the carrier will be inducted into service with the Indian Navy in two years.
The CCS has cleared another $1.2 billion deal to procure an additional 29 MiG-29K naval fighters to supplement the 16 already on order for operations onboard the Gorshkov. These aircraft will also operate from the Indigenous Aircraft Carrier (IAC) that is being built at the Cochin shipyard.
The need for the additional lot of MiG-29Ks arises because a domestic attempt to develop naval fighters based on the Tejas Light Combat Aircraft platform has run into development problems. Defence minister AK Antony informed Parliament on Wednesday that 'deficiencies have been detected in the airframe and other associated equipment of the aircraft'.
''Defence Research and Development Organisation (DRDO) is working out modalities with various organisations for rectifying these deficiencies by suitable modifications to the engine and airframe design,'' he said.
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