Gorshkov modernisation in jeopardy due to lack of funds

Moscow, Aug 1 (UNI) The Indo-Russian contract on the retrofitting of heavy aircraft carrier Admiral Gorshkov is in jeopardy due to a lack of funds and poor management, and may be delayed for about four years, Russian media reported today.

The 1.5 billion dollar contract signed between Russia's state arms exports organisation Rosoboronexport and Indian Navy in January 2004, included the modernisation of the 45,000-ton aircraft carrier and equipping it with modern weaponry, including the MiG-29K Fulcrum aircraft and Ka-27 Helix-A and Ka-31 Helix-B anti-submarine helicopters.

Currently, Gorshkov is undergoing modernisation work at the Sevmash shipyard in Severodvinsk, in northern Russia.

''The aircraft carrier is being overhauled at the shipyard, but unfortunately, the funds allocated for the work under the contract are not sufficient and we will have a hard time to meet the schedule,'' Russian daily Izvestia today quoted acting director of Sevmash, Eduard Borisov.

''We are practically building a new ship using an old hull and changing everything else,'' Borisov said, adding that the shipyard management earlier made an incorrect assessment of the modernisation cost.

A high-ranking source in the defence industry told RIA Novosti news agency that the company's officials had underestimated the projected retrofitting budget by at least 60-70 per cent but had denied their mistakes for a long time.

He pointed out the work already done on the Admiral Gorshkov could be compared to the ''construction of two destroyers.'' ''It would have been much easier to start the construction of an aircraft carrier from scratch than to modernise the old one,'' the source noted.

Sevmash shipyard's Director General Vladimir Pastukhov was recently fired after failing to meet deadlines and some media reports suggested that prosecutors were investigating a possible fraud case over mismanagement of funds by Sevmash officials.

Mr Izvestia said Zvyozdochka shipyard's Director General Nikolai Kalistratov could be appointed as the new head of Sevmash in the next few weeks.

UNI