India, Russia closer $25Bn deal for fighters

India plans to buy over 250 next-gen Sukhoi T-50 / PAK-AF fighters, which it has now designated Fifth Generation Fighter Aircraft, FGFA. (Sukhoi photo) The Tenth Meeting of the India-Russia Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC) was held here today. The Defence Minister Shri AK Antony and the Russian Defence Minister Mr. AE Serdyukov headed the respective delegations. The Indian delegation included Defence Secretary Shri Pradeep Kumar, Secretary (Defence Production) Shri RK Singh, Shri VK Saraswat, Scientific Adviser to Defence Minister and other senior officials of the Ministry of Defence and the Armed Forces. The Russian delegation included representatives from the Russian Ministry of Defence and the Russian Defence Industry. In his opening remarks at the IRIGC-MTC meeting, Shri Antony said that India values the strong and multifaceted friendship with Russia and noted that the defence relationship between both countries is based on convergent and complementary interests and has been mutually beneficial. He also observed that the bilateral defence cooperation with Russia is a comprehensive partnership, in which both countries have moved beyond the buyer-seller relationship and are collaborating in joint R&D and production of defence equipments and systems. The Commission took note of the progress on several major projects since its last meeting, which was held in Moscow in October 2009. Both sides expressed satisfaction at the conclusion of the Shareholders Agreement for formation of a Joint Venture Company for the development and production of the Multirole Transport Aircraft (MTA). Further, both sides agreed to expedite modalities for the proposed project for the joint design, development and production of the Fifth Generation Fighter Aircraft (FGFA). “India hopes to get 45 MTA and also finalize the FGFA, … all the issues we have discussed and solved between our two countries… now it is in the final stages of the Indian government, some technical formalities between the governments is needed and I am sure we will be able to complete very soon…within a few months,” Shri Antony later told a joint press conference. “As per this agreement India will receive approximately between 250-300 most modern FGFA. These two projects are the major achievements of this year and for the next ten years these two projects, MTA and FGFA, will be a shining example of India and Russian defence cooperation,” he added. “We have very good big plans and we have very serious projects and work before us. And this, as I said, will be a big challenge and we will try to do our best in order to prove that our bilateral cooperation can give us very good practical results,” said Mr. Serdyukov. The Joint Commission also reviewed the status of several other ongoing and proposed projects, including the license production of T-90 tanks and the establishment of the repair and overhaul facilities in India for various defence equipment of Russian origin. The IRIGC-MTC was established in 2000, with a view to further bilateral defence cooperation between India and Russia. Russia is the only country with which India has such an institutionalized mechanism at the level of the Defence Ministers of both sides, which highlights the strength and importance of the bilateral defence relationship. The Commission is supported by two Working groups – on Military Technical Cooperation and Shipbuilding, Aviation and Land Systems respectively and seven sub-groups. The scope for military technical cooperation between both countries is defined through an umbrella inter-Governmental agreement; and Agreement on a long term programme for military and technical cooperation for the period 2011-2020 was signed during the visit of the Prime Minister Dr. Manmohan Singh to Russia in December last year. Reports in the Indian media included the following additional information: -- The cost to India of the fighter deal is estimated at $25 billion. This figure presumably includes the massive infrastructure needed to base, operate and maintain such advanced platforms in India. -- About 50% of the Indian air force’s aircraft inventory is currently considered obsolete. Following these and other new acquisitions, this percentage will fall 30% by 2014. -- Initially, India and Russia aim to manufacture 205 Multi-role Transport Aircraft to meet the requirements of both Indian and Russian military. -- India will received the reconditioned aircraft carrier Gorshkov by 2013. India had bought Gorshkov in 2004 for US$ 974 million but its delivery, originally fixed for 2008, slipped repeatedly. India earlier this year pad Russia an additional US$ 2.34 billion to refit the ship.