October 18, 2007:
India has agreed to pay Russia a
higher annual increase (to account for inflation and the fluctuating value of
other currencies) for weapons. The old rate was 2.8 percent a year, while the
new one is five percent. Russia had been withholding deliveries until an
agreement was reached. Thus the new shipment of Su-30 kits (the aircraft are
shipped in pieces, for assembly in India) will cost $40 million each, for 40
aircraft. This will give the Indians a total of 230 Su-30s (roughly equivalent
to the U.S. F-15C) by 2010. Overall, the average price of each of those
aircraft has been closer to $25 million each. That's a bit less than half the
cost of an F-15C, and that price break is the major reason the Indians keep
buying Russian warplanes.