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According to the head of the state technology corporation, Sergei Chemezov, Russia and India will strike a new deal so that the aircraft carrier, Admiral Gorshkov, can be refurbished.
"An additional agreement will be signed," Sergei Chemezov, who leads the Rostekhnologii, told a news conference in Moscow.
According to the original &1.5 billion worth deal that had been inked in 2004, the work of the aircraft carrier should have been completed by 2008. This deal also calls for the delivery of MiG-29K Fulcrum carrier-based fighters.
But the project was not completed as Russia had demanded an additional $1.2 billion for the meeting the expenses, which was denied by Delhi stating that it was "exorbitant".
But finally in Feb 2008, after lots of disputes, the fund was allocated so that refurbishing the air craft is not further delayed. The air craft carrier is anchored at Sevmash shipyard in northern Russia.
Russia said it was not satisfied with the proposed amount and the issue of the additional funding remains unresolved.
Even though discussion related to additional funding are in progress, according to Russia, the aircraft carrier will soon complete its renovation. Russia has also added that this will be delivered to India by 2012, provided it receives the additional funding of $1.2 billion from Delhi.
According to Russian media, India has no alternative but to allocate the required funds, despite recent objections from the government's accounting office, because the Indian Navy desperately needs to replace its INS Viraat, which, although currently operational, is now 50 years old.
After modernisation, the carrier will join the Indian Navy as INS Vikramaditya, and is expected to be seaworthy for 30 years.
