Groshkov deal is still on.

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The defence deal between India and Russia for the aircraft carrier Admiral Gorshkov is ‘final’ and work is under way to equip the ship to meet the needs of the Indian Navy, a top Russian official said Thursday.

“The work is on to equip it. It is going on successfully. There is no alarm about the status of the deal,” Russian Ambassador to India Alexander Kadakin told mediapersons.

He said further discussions will be held on the Gorshkov deal when Defence Minister George Fernandes visits Moscow next week.

“The Indian media has been misreporting that the deal is not final. There is a misconception that the Gorshkov deal is not concluded. The contract was signed when President (Vladimir) Putin visited India in 2000,” Kadakin said.

He said there was no reason to imply that there had been a failure on the signing of the deal.

Kadakin said several contracts will be signed with regard to the upgradation work of the aircraft carrier.

The Russian Ambassador’s comments came when reporters asked visiting Secretary of the Russian Security Council V B Roushailo whether the Gorshkov deal will figure in talks between Fernandes and his Russian interlocutors.

Although Admiral Gorshkov is a ‘gift’ from Russia it will cost India more than $700 million for re-fit besides the price of the aircraft that the ship will carry. The Russian side had given a report which had been studied by a committee.

While there has been a view that the cost for re-fit was enormous, the deal is seen as the best option for the Indian Navy which urgently requires another aircraft carrier to join INS Viraat.

Kadakin said Indo-Russian cooperation in various sectors of defence had got a boost and the joint development of the anti-ship Cruise missile ‘Brahmos’ was a conspicuous example.

The two countries were currently not only talking of sale of arms but also about research and development of military hardware, the Russian Ambassador said.