India signed 500 million dollars deal with Russia


India signed a deal with Russia today, in which 500 million dollars are to be spent for the construction for two Indian Nacy Warships. The warships are to be built in Goa. According to the report by News agency PTI, the defence firm Goa Shipyard Limited, which is run by the state, signed the deal with Russian company Rosoboronexport. The deal is signed under a government-to-government framework for defence cooperation.


The designs, technology and some of the material are to be provided by Russia, while Indian firm will provide the rest of the material and will do the work of assembling.


The mega project of warships to be started in 2020, told Goa Shipyard Limited Chairman and Managing Director Shekhar Mital to PTI. He confirmed that one of the two warships will be completed by 2026. While the second one will take a year more than that.


The total cost of the project is not known yet. The value of 500 million dollars is for the foreign content only. The two ships, in the end, will cost much more than 500 m. dollars.


According to a report by Hindustan Times, “The $500 million is for the foreign content in the vessels, including material, design and specialist assistance. The frigates will cost more factoring in the indigenous content. That cost is being worked out.”


Another mega project of similar warships has been signed between the two countries; India and Russia. According to a report by Hindustan Times, India signed a deal with Russia worth 950 million dollars (6787 crore INR) last month. The deal is to import similar kind of warships from Russia. These ships are built at Yantar Shipyard in Kaliningrad and are expected to be Delivered to Indian Navy by 2023.

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