Defence Minister A K Antony's four-day visit to Moscow, beginning today, is expected to reinvigorate defence cooperation between both countries, India has apparently succumbed to the Russian demand for jacking up the annual cost escalation charge of contracted weapon systems to 5% from the present 2.55%.

While the defence ministry was tight-lipped, sources said this would lead to India paying millions of dollars extra for the 230 Sukhoi-30MKI fighters at an overall cost of over $8.5 billion. Of the 230, IAF has already inducted around 60 of these fighters, which will be the mainstay of India’s combat fleet in the coming years. While the deals for 190 Sukhois were signed earlier, another one for 40 of these fighters was finalised recently at a cost of around $1.6 billion.

Apart from Sukhois, India is also on course to acquire 347 more T-90S main-battle tanks and 80 more Mi-17 medium-lift utility and assault helicopters from Russia.

Source : (Times)