By NNN-PTI,
New Delhi : Still to resolve their deadlock over the cost escalation of aircraft carrier Gorshkov, India and Russia are in a fresh price row over a deal to purchase 80 medium lift helicopters for the Indian Air Force.
Though the Ministry of Defence finalised the proposal to purchase 80 upgraded MI-17IV helicopters at a cost of over USD 650 million in March last year, the deal is yet to go through as Russian Company Rosoboroexport has hiked the price tag for the choppers to a billion dollars, sources said.
The Defence Ministry went ahead with the proposal to acquire the MI-17IV helicopters as the IAF expressed its preference for these helicopters.
The Helicopters are being bought by the IAF to bolster its strategic airlift capability on the mountainous Sino- Indian and Indo-Pak borders. Presently IAF operates a 12 squadron strong fleet of Mi-17 and MI-8 helicopters.
The upgraded MI-17IV helicopters are powered by two Kilmov Tv-3 engines giving them capability of landing at over 18,000 feet.
No global tenders were floated and the purchase was marked as a follow on order, but the demand for more than fifty per cent price hike has irked the Ministry of Defence.
To the dismay of the Ministry, sources said the haggling over the price comes close on the heels of Russian demand for USD 1.5 billion more for the delivery of the aircraft carrier Groshkov.