India, Russia revive fighter aircraft talks; Kamov cost negotiations begin

Under the new offer, India will have to pay $3.7 billion, instead of $6 billion

India, Russia revive fighter aircraft talks; Kamov cost negotiations begin
Press Trust of India New Delhi
Last Updated : Feb 10 2016 | 6:20 PM IST
After a hiatus of nearly a year, India and Russia have revived talks on the much delayed Fifth Generation Fighter Aircraft (FGFA) even as cost negotiations for the joint production of 200 Kamov 226T helicopters have begun.

A high level Russian delegation is in town to hold negotiations on both the projects, high-level defence sources said.

"We have got the clearance to restart the talks. Accordingly, a Russian team is here and cost negotiations began yesterday," the sources said.

Also Read

India has already pumped in about $290 million into the project but it got delayed because the IAF had some issues.

Russia has made a new offer on the delivery of Sukhoi T-50 (PAK FA) fighter jets to India under the joint FGFA initiative.

Under the new offer, India will have to pay $3.7 billion, instead of $6 billion, for the technological know-how and three prototypes of PAK FA fighters.

In 2010, India had agreed to pay $295 million towards the preliminary design of the fighter.

The code name of the project in India is Perspective Multi-role Fighter (PMF).

The Russian delegation will also hold talks with state-run Hindustan Aeronautics Limited for 200 Kamov 226T light helicopters to replace the ageing fleet of Cheetah and Chetak, in a deal estimated to be worth $1 billion under the 'Make in India' initiative.

Defence Ministry had in August last year scrapped a scam-tainted tender worth over Rs 6,000 crore to procure 197 light utility helicopters for Army and Air Force to replace the fleet of Cheetah and Chetak choppers, which are used to move troops and equipment to high-altitude locations like Siachen.

Following Russia's offer to manufacture Kamov in India, the Defence Acquisition Council, chaired by Defence Minister Manohar Parrikar, accepted it.

Though the initial order is only for 200 helicopters, it is likely to be increased later on.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 10 2016 | 5:08 PM IST

Next Story