Financial Penalties On Russia For Gorshkov Delay

While it has been known for a while that India planned to penalise Russia for the delays in delivery of the Vikramaditya (formerly Admiral Gorshkov) aircraft carrier, this was officially stated for the first time today in Parliament by the Indian defence minister.

Responding to a question on the carrier programme, A.K. Antony said, “[D]elivery of the aircraft carrier INS Vikramaditya (Gorshkov), after completion of repairs and sea trials, would be made in the last quarter of 2013. The aircraft carrier was subjected to extensive trials for the first time for 108 days from 8th June 2012 to 23rd September 2012, with a part of the Indian crew on board, undergoing training during the sea trials. While a substantial scope of ship’s equipment and aviation trials were completed during this period, the main propulsion plant trials to full power could not be completed due to defects encountered on boiler section. Rectification of the defect is likely to take six months. Liquidated Damages (LD) clause for delays in delivery is incorporated in the contract. As per contract, LD is to be ascertained and levied within six months of ship’s delivery.

15 thoughts on “Financial Penalties On Russia For Gorshkov Delay”

  1. The Russians must be laughing at the thought of Indian MoD imposing LD when so many joint strategic projects are led by the Russians. So, who is the MOD trying to fool? Lawmakers? Or itself?

  2. Most of the people who talk/comment about the defence matters on web or blogs are not awarae of the fact that the failure of Vikramaditya's boilers was due to the Indian Mod's insistence of "Not using Asbestos" as thermal liner and instead insisted/forced Russians for using Fire-Bricks as Thermal Liners, which Russian experts had warned Indian MOD as this solution might not work as this Solution of Using Fire Bricks instead of Asbestos,was not tested in Russia before,for the kind of BIG Boilers INS Vikramaditya Has(Yet MOD insisted and this was done by MOD on purpose, probably due to pressure/offer from Anti-Russia political lobby/country,who want to bring a bad name for Russian products and Bag defence deals worth Billions of dollars). Now same MOD has agreed to use Russian suggested/tested solution of using Asbestos in the Vikramaditya's.large boilers.

    Only after successfully derailing the Russian delivery (i.e. delaying delivery schedule)and now will be publicized by some media in India and world as if Vikramaditya delivery has delayed by 1 year, due to only Russian mismanagement.

  3. Sailing junk at taxpayers expense. India could have gone for brand new BAE Systems QE class aircraft carrier at the same price !!

  4. @Jaishankar

    You should do it then. Also, you may want to by SSN, frigates and naval fighters from them. Ah, and also they could give you a hand with 5gn fighter and space program. I'm sure you would already have all these for less money and on schedule…

    [facepalm]

  5. Now this shit would be delivered to us after 18 months , thats good news as this so called guinea pig on which Russian shipbuilding industry learned to build aircraft carrier at Indian taxpayers expense.you may charge penalty but the fact remains most of time this guinea pig carrier would be docked in for repairs and rosonboroexport would charge exorbitantly for repairs.They achieved what they wanted. I feel if we get this ship at half price as this is reconditioned refurbished substandard product which would need major repairs and soon would be sold on tonnage value.

  6. Centurion @ Have you ever been to a junk Soviet era naval ship (even a merchant ship)??? 3 decade old technology and crude design !!

    All for a final bill of $2.34 billion !!

  7. The Point here is the cost versus the technology that is being offered. By the time the white elephant joins the navy some of its technologies would be old enough to be revamped. The only plus point on this carried would be that it would carry the MIG29. How good a weapons plat form this is would only be seen in future.

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