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India, Russia in price row over purchase of helicopters

BATMAN

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India, Russia in price row over purchase of helicopters

NEW DELHI, June 1 (APP): With hike in prices of helicopters by Russia, a new price row has emerged between Moscow and Delhi over the deal of 80 upgraded MI-17IV helicopters India is intending to purchase. Media reports quoting sources said the Indian Ministry of Defence has finalised the proposal to purchase 80 upgraded MI-17IV helicopters at a cost of over $ 650 million in March last year from Russian Company Rosoboroexport. But the company has hiked the price of the choppers to a billion dollars.

The Indian government did not float the global tenders for this purchase which was marked as a follow on order. But the Russian demand for more money has perturbed the Ministry of Defence, the sources said.

Both the countries have not been able to resolve the issue of cost escalation of aircraft carrier Gorshkov so far.

The Indian Air Force has recommended these helicopters to bolster its strategic airlift capability on the mountainous borders with Pakistan and China. At present, IAF has a 12 squadron fleet of Mi-17 and MI-8 helicopters.

The upgraded MI-17IV helicopters, powered by two Kilmov Tv-3 engines can land at over 18,000 feet.

An eye opener for those indians who claim to teach lesson to Russians. :victory:
 
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India, Russia in price row over purchase of helicopters



An eye opener for those indians who claim to teach lesson to Russians. :victory:
I don't think there are any "lessons to be taught" in such matter since they are primarily business arrangements. India's first choice for hardware has by default been Russia because of prior inventory. Russia is upset that India is looking to the west for their defense needs and taking a hard stance on the current deals. The only problem is that over the past decade the west has made far more advances in this field and the Russians unfortunately do not have the qualitative products to back their new found stance. Undoubtedly they will lose their biggest client and they have nobody else but themselves to blame for it
 
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The reasons for these delays are both economic and political.

Economical reasons: Fall in value of dollars; increase in cost inputs in the Russian defense manufacturing industry.

Political reasons: MRCA.
 
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Perhaps Russians are making an effort to extract as much money as possible before they loose this market. However it would not be easy for India to switch from Russian to European/US weapons. Alot of money and time is needed for that.
 
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Perhaps Russians are making an effort to extract as much money as possible before they loose this market.

This is not supposed way of doing a business, if they follow above approch then one day they would not have any customers under their sleevs. Morever their demands can also be sincere because rising inflation and global recession.

However it would not be easy for India to switch from Russian to European/US weapons. Alot of money and time is needed for that.

First get it clear about what we are debating over here. We are debating about the purchase of heavy lift helicopters which aren't supposed to configured with weapons except in selective cases. Another thing you should note that we are already operating several weapons of european origing like fighter jet, Anti-ship missile, Radar etc.
 
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