The
Russian carrier, to be renamed Vikramaaditya, was planned
to be the core of India's new three-carrier naval oceangoing
force. The 273 meter long Kiev Class ship was built at the
Nikolaeve shipyard in the Ukraine between 1978 and 1987 as
a V-STOL carrier designed to operate Yak-38 aircraft. Although
the ship was commissioned by the Navy of the Soviet Union
in 1991 it was never completed and, therefore, required extensive
completion work, in addition to the repair required due to
aging, corrosion and preparations to meet customer requirements.

Originally, Russia agreed to modernize the ship for about
$750 million, as part of a $1.5 billion package which also
included 16 MiG-29K/KUB a naval derivative of the MiG-29 Fulcrum.
India has an option to buy additional 30 MiG-29Ks for other
naval units.
However, after surveying the ship, both sides realized this
amount would be insufficient to fulfill the contract. Russia
plans to begin delivering the MiGs by mid-2008, about six
months after the original schedule but almost four years ahead
of the planned handover of the carrier for which they were
bought.
The ship's completion was also pushed back to 2012, delaying
the original delivery date by four years. The situation was
further aggravated by the weakening dollar. Russia demanded
an additional $1.2 billion, while India agreed in principle
to pay about half of that amount. The Russians claim they
are about to complete working on the hull and 'ski-jump' flight
deck. However, much work remains on the ship's electronics
and weapon systems which have yet to be produced. Among the
weapons considered for installation on the Vikramaaditya are
the Indo-Russian BrahMos supersonic anti-ship cruise missiles,
Barak I ship defense missiles and Kashtan air defense systems.
The ongoing debate presents an opportunity for competitors,
such as the U.S.A., which is reportedly planning to submit
a proposal to deliver the soon to be decommissioned USS Kitty-Hawk
(CV-63) aircraft carrier. In 2006 Washington already transferred
USS Trenton, an Amphibious Transport Dock Ship (LPD-14) after
it was decommissioned from U.S. Navy service. The U.S. offer
will, most likely, be based on a package similar to the Russian
offer – a carrier with 65 F/A-18E/F aircraft - the most
sophisticated fighters currently in U.S. Navy arsenal - considered
to be superior to the MiG-29Ks. While such a proposal could
be lucrative for potential selection of this fighter for the
upcoming MRCA program, officials in New Delhi are keen to
separate the decisions of the air force and navy. While the
Indian Air Force is seeking 126 multi-role combat aircraft
to replace its MiG-23/27 aircraft, the Navy is expected to
require up to 200 aircraft in the next decade, to equip three
carrier air wings and replace the current Sea Harrier and
Jaguar aircraft operated by the Indian Navy.
For more reading see Reuben
F. Johnson's article in The Daily Standard.