Russian nuclear subs high on India's shopping list
By Rahul Bedi
NEW DELHI - Indian Defense Minister George Fernandes arrived in Moscow on Wednesday to negotiate the acquisition of the Admiral Gorshkov, a 44,500-tonne Soviet aircraft carrier and the "associated" lease of two nuclear-powered submarines.
India wants the nuclear submarines to go into service by 2004 to bolster its nuclear deterrence that it says is based on land, sea and air-based assets and also expand its navy's growing operational responsibilities, especially to counter Chinese expansion in the Indian Ocean region. The Indian Navy recently agreed to patrol the Malacca Straits along with the US Navy, a region over which the Chinese navy exercises considerable control. The United States wants to police the Straits through which more than 80 percent of Japan's oil supplies from the Middle East pass and to establish its presence in the region over the long term.
A Ministry of Defense spokesman said Fernandes' five-day Moscow trip is a continuation of the Inter-Governmental Commission on Military Technology, which met here in February but failed to reach an agreement on the carrier and the two nuclear-powered submarines despite protracted talks. Consequently, Russian Deputy Prime Minister Ilya Klebanov, who headed his country's delegation at the Delhi meet and was the main interlocutor for the sale of defense equipment to India, was "divested" of his military responsibilities upon returning to Moscow. Indian officials said Russian Defense Minister Sergei Ivanov would head the Inter-Governmental Commission on Military Technology meeting at Moscow.
Official sources said Russia had predicated leasing the two nuclear submarines to the Indian Navy buying the Admiral Gorshkov, which is being offered for the price of its refit at about US$750 million. India is unwilling to pay this amount for the carrier, which was seriously crippled by a fire and has been lying unused for more than a decade. Russia is also insistent that India buy about 40 MiG-29K fighters for the carrier's air group for about $1.3 billion.
"Serious differences over the Gorshkov's refit costs and its air group led to a breakdown of talks between Fernandes and Klebanov in February," a military officer said. While the matter remains undecided, India is unlikely to get the nuclear submarines it is anxious to operate, added the officer, who declined to be identified.
Three Indian naval teams have visited Russia since 1995 to examine the feasibility of acquiring the Gorshkov and have recommended that the carrier is capable of remaining in operational service for 20 years after its refit. Though India finds the price for the refit unacceptable, the final investment decision will be made after the recommendation of a newly constituted defense committee, ministry officials said.
India is expected to pay for the construction of the two nuclear submarines it wants under an agreement that is in an advanced stage of discussion with Rosoboronexport, Russia's state-owned arms-exporting agency. Negotiations for the two nuclear subs received a boost after Indian Prime Minister Atal Bihari Vajpayee's visit to Russia in November and the admission by Indian naval officials that local development of the nuclear submarines, known as the Advanced Technology Vessel, had run into serious technological and financial problems.
This vessel's design is based on a Charlie I-class cruise-missile nuclear submarine, one of which India leased for three years in 1988. Thereafter, India planned on acquiring aboaut four or six nuclear submarines, but the disintegration of the Soviet Union put an end to its plans.
Fernandes will also discuss the long-standing proposal to provide Delhisix S 300 PMU 1 anti-tactical ballistic missile (ATBM) systems for $1 billion. India has been negotiating for the ATBM system for nearly five years and plans on merging the locally developed Akash low-to-medium-altitude surface-to-air missile and the indigenous Rajendra radar with the S300 PMU 1, to reduce its price.
"The integrated air-defense proposal will certainly be on the table during Fernandes' visit," said Vladimir Simonov, head of the Russian government agency for defense control systems. Russia also plans to establish several joint ventures with Indian companies to produce electronic devices and radars, both for civil and military applications, Simonov added.
Also to be discussed is the first Indo-Russian joint-venture company BrahMos (an acronym for Brahmaputra-Moscow), which will begin series production of an anti-ship cruise missile successfully test-fired last year to a range of 280 kilometers.
Official sources said Fernandes is also expected to ask Moscow to expedite the delivery of 310 T90S main battle tanks that India bought last year for more than $700 million. The first batch of about 40 tanks has already arrived and is undergoing pre-induction trials.
The sale of three Kilo-class submarines, three Amur-class diesel-electric submarines and transfer of technology to build six additional submarines too will feature in the defense ministers' talks.
Meanwhile, the symbolic "cement pouring" ceremony to begin construction of two 1,000-megawatt nuclear power reactors that Russia is building at a cost of Rs140 billion ($2.9 billion) at Kudankulam in southern Tamil Nadu state was held this month. The plants' enriched uranium will be supplied by Moscow, while India will reprocess the spent fuel and safeguard it.