India to purchase $2.2 billion Russian Frigates

India has cleared the way for a $2.2 billion Russian frigates purchase, this news comes just weeks after the Indian government announced that it had partnered with US defence organization COMCASE (communications Compatibility and Security Agreement).

The India-Russia frigate agreement opens the door for Indian Navy to purchase Russian warships; the deal is expected to be signed when President Vladimir Putin and Prime Minister Narendra Modi meet in October. The frigate deal has long been in the making and is now nearing its conclusion and will be finalized before the meeting.

The frigate deal includes the procurement the advanced Talwar-class frigates and will also involves the construction of the ships at the Goa Shipyard. The others will be purchased later directly from Russia. Payment for frigate is said to be concluded using a Rupee-Rouble transfer as Russia is still under heavy sanctioning from the USA.

The deal will also see the transfer of skills and technology from Russia to India as the Goa shipyard in India will be used to build the two of the frigates. The Indian made warships are expected to cost 30-50% more than the Russia warships they are purchasing. However, India believes the transfer of technology to the Indian state owned Goa shipyard is worth the expense in the long term.

Source: economictimes.indiatimes.com

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