The Hindu : International / India & World : Payment problems may delay MiG delivery

Online edition of India's National Newspaper
Friday, Apr 16, 2004

International

International - India & World

Payment problems may delay MiG delivery

By Vladimir Radyuhin

MOSCOW, APRIL 15 . Russia is to deliver the first MiG-29K fighter plane for the Gorshkov aircraft carrier in early 2007, but the schedule may be pushed back due to a delay in financing the project.

The signing of the contract for the acquisition of Gorshkov on January 20 set the clock ticking for the MiG aircraft corporation to supply 16 wing-folding ship-borne MiG-29K planes between the 36th and 52nd weeks from the date of the deal. However, New Delhi is still to make advance payment for the aircraft, even though the money should have come two months ago.

Under a $700-million deal, the MiG Corporation is to build 12 combat MiG-29K planes and four MiG-29KUB trainers, as well as train 12 pilot-instructors in takeoff and landing on the Gorshkov deck.

The General Director of the MiG Corporation, Valery Toryanin, said he did not know the reason for the funding delay even though he had sent the invoice to India shortly after the contract was signed. Indian sources said the Russian invoice had reached New Delhi too late for the payment to be made before the new fiscal year began on April 1.

Notwithstanding funding problems, the MiG Corporation has come a long way with preparations for building the MiG-29K, retooling equipment, storing materials and signing contracts with suppliers. Mr. Toryanin told The Hindu that his company was 80 per cent ready to start constructing MiG-29K for India. However, further payment delay may affect the delivery schedule, he said.

The MiG manufacturers hope the Gorshkov contract will pave the way for more sales of MiG planes to India.

The Indian Air Force has a large fleet of MiG-21, MiG-27 and MiG-29 aircraft, but recently they have been outshone by the longer-range SU-30MKI built by MiG's Russian competitor, the Sukhoi company.

The MiG Corporation is taking part in an IAF tender for a light attack aircraft with the MiG-29MRCA (multi-role combat aircraft), a land-based version of the shipborne MiG-29K. The company has not abandoned efforts to sell India its new advanced jet trainer, MiG-AT, built jointly with France. The MiG-AT, which has Larzak engines and Talas avionics, has recently been fully certified and is expected to be inducted by the French Air Force.

In a wide-ranging interview, Mr. Toryanin touched upon the problem of MiG-21 crashes in India. While admitting he did not have the full picture, he said "poor maintenance and faulty spares" purchased from "unauthorised dealers" were part of the problem.

"The MiG Corporation can supply practically the full range of spares, but India orders from us only five to six per cent of what the IAF needs."

To resolve the problem, the MiG and HAL have revived the idea of setting up a service centre in India to provide comprehensive maintenance to all the MiG-series aircraft in service with the IAF, establish and remove causes of equipment failures, and undertake marketing of MiG planes in South East Asia. Later on, the centre could gain a regional status, the MiG company head said.

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Payment problems may delay MiG delivery