ISLAMABAD: The acquisition of the aircraft carrier now known as INSVikramaditya stands as one of the most controversial defence deals inIndia’s naval history. Originally offered by Russia as a seemingly generous”free gift” in the mid-1990s, the mothballed Admiral Gorshkov soontransformed into a multi-billion-dollar burden. What began as an attractiveproposition to bolster India’s carrier fleet quickly unraveled into yearsof delays, sharp price escalations, and questions over decision-making. Thesaga highlights the perils of rushed acquisitions from traditionalsuppliers and continues to influence India’s procurement strategies eventoday.
The story traces back to the Soviet era when the vessel, initially namedBaku, entered service in 1987 as a hybrid cruiser-carrier. Following theSoviet Union’s collapse, it was renamed Admiral Gorshkov but decommissionedin 1996 due to high operational costs and a boiler explosion in 1994.Russia, facing economic constraints, offered the ship to India around themid-1990s with the hull essentially free, provided New Delhi funded theextensive refit to convert it into a full STOBAR carrier compatible withMiG-29K fighters. This appeared economical compared to building a newvessel, prompting negotiations that culminated in a 2004 contract valued atapproximately $974 million for the upgrade and associated systems.
However, the deal soon encountered severe challenges as the refit work atRussia’s Sevmash shipyard revealed far greater deterioration thananticipated. Russian officials cited unexpected structural issues,inflation, and rising costs, demanding a substantial increase. By2007-2008, the price had escalated dramatically, with Moscow seeking nearlythree times the original amount. India, heavily reliant on the carrier toreplace the aging INS Viraat and maintain its maritime posture, facedlimited alternatives. The negotiations dragged on amid threats ofcancellation, ultimately leading to a revised agreement in 2009-2010 thatfixed the final cost at around $2.35 billion for the refit alone, excludingaircraft and weapons.
The massive cost overrun, effectively tripling the initial estimate, drewwidespread criticism within India. Reports indicated that the originalassessment underestimated the scope of work required for the 44,500-tonnevessel, including major modifications to the deck, propulsion systems, andintegration of new equipment. The Comptroller and Auditor General of Indialater highlighted that opting for a refurbished second-hand ship provedsignificantly more expensive than anticipated, while also carrying alimited remaining service life. The delivery, initially slated for 2008,was delayed by five years until the carrier was commissioned as INSVikramaditya in November 2013.
Adding to the controversy were allegations of irregularities during thenegotiations. In 2010, a senior Indian Navy officer involved in the projectfaced a high-level inquiry over claims of blackmail involving compromisingphotographs, potentially influencing decisions. Although not conclusivelylinked to the price hike, such incidents raised concerns aboutvulnerabilities in high-stakes defence talks. While no major corruptionscandal was proven in the deal itself, the episode underscored risks inprolonged engagements with foreign partners where leverage shiftsdramatically.
The fallout from the Admiral Gorshkov experience profoundly reshapedIndia’s defence procurement framework. The Ministry of Defence introducedstricter procedures, emphasizing detailed technical evaluations,fixed-price contracts, and greater scrutiny to prevent ad-hoc revisions.These reforms, while eliminating surprises like sudden cost escalations,have contributed to prolonged delays in several subsequent acquisitions.Critics argue that similar challenges persist with other suppliers, but theGorshkov case remains a stark reminder of the dangers of underestimatingrefurbishment complexities.
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Today, INS Vikramaditya serves as the Indian Navy’s flagship, participatingin joint operations and multinational exercises. Recent refits, including amajor one contracted in late 2024 for over ₹1,200 crore with CochinShipyard, aim to extend its operational life and enhance capabilities.Despite the initial setbacks, the carrier has strengthened India’s presencein the Indian Ocean Region. Nonetheless, the deal’s legacy endures as acautionary tale of strategic dependence and the true cost of seeminglyattractive offers.
Source: https://en.wikipedia.org/wiki/INSVikramaditya
Tags: INS Vikramaditya, Admiral Gorshkov, Indian Navy, Russia Defence Deal,Sevmash Shipyardogimage_image-name