Financial Penalties On Russia For Gorshkov Delay

While it has been known for a while that India planned to penalise Russia for the delays in delivery of the Vikramaditya (formerly Admiral Gorshkov) aircraft carrier, this was officially stated for the first time today in Parliament by the Indian defence minister.

Responding to a question on the carrier programme, A.K. Antony said, "[D]elivery of the aircraft carrier INS Vikramaditya (Gorshkov), after completion of repairs and sea trials, would be made in the last quarter of 2013. The aircraft carrier was subjected to extensive trials for the first time for 108 days from 8th June 2012 to 23rd September 2012, with a part of the Indian crew on board, undergoing training during the sea trials. While a substantial scope of ship's equipment and aviation trials were completed during this period, the main propulsion plant trials to full power could not be completed due to defects encountered on boiler section. Rectification of the defect is likely to take six months. Liquidated Damages (LD) clause for delays in delivery is incorporated in the contract. As per contract, LD is to be ascertained and levied within six months of ship's delivery."

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