The deal, which is estimated to cost around US $1.5 billion, would be India’s second-biggest defence contract with Russia following the S-400 deal concluded earlier this year. French and Swedish firms also bid to supply the Very-Short-Range Air Defence systems but Russia’s Rosoboroexport offered to do so for the lowest price.
India is planning to pay in rupees for Very-Short-Range Air Defence (VSHORAD) systems from Russia; the deal is likely to be concluded next year, a government official told Sputnik.
The decision to pay the rupee equivalent of around US $1.5 billion for the defence systems was made to circumvent US sanctions against Russia which were launched under the Countering America's Adversaries through Sanctions Act (CAATSA).
However, the two countries are hopeful that some other arrangement will also be available by the time the first instalment of the contract money would be made.
Sources confirmed with Sputnik that the procurement of the Very-Short-Range Air Defence system was discussed during the 19th annual summit, held on October 5 in New Delhi.