The Indian ambassador to Russia has sought to downplay rising concerns over a faltering naval arms deal.

Moscow has reportedly demanded an additional $2 billion for the retrofitting of the Admiral Gorshkov, a decommissioned Soviet aircraft carrier.

"I am confident that we will find a solution. I would say that we are still in the process of talks about new conditions and delivery schedule. I don't know what will be the result of these negotiations, but I am confident in one thing - both sides realise their responsibility to look for an acceptable solution of the problems related to this, our biggest defence co-operation project," ambassador Prabhat Prakash Shukla told the Interfax news agency.

As IT Examiner previously reported, the Indian Navy was originally scheduled to commission the refurbished Gorshkov by the end of 2008. However, delivery of the carrier has been delayed until 2012. Nevertheless, New Delhi may have little choice but to comply with Russia's latest extortionist demands. Indeed, India's sole aircraft carrier, the INS Viraat, is quickly deteriorating and may no longer be seaworthy in the near future.

It should be noted that a number of high ranking officials have leveled damning charges against the defence establishment over poor negotiating tactics and a propensity towards over payment. For example, New Delhi chose to purchase three AWACS (airborne warning and control systems) from IAI (Israel Aerospace Industries) for $1.1 billion, despite the fact that Israel planned to sell the same planes to Beijing for a mere $358 million. Unsurprisingly, delivery of the AWACS has been delayed until at least 2009.  X

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