The price renegotiation of the Gorshkov — Russia has asked for $1.2 billion more to complete works on the Kiev class warship — has reached the final stage and is set to be presented before the Cabinet shortly.

Under the original deal struck in 2004, India paid $1.5 billion for complete refurbishing of the carrier and a compliment of MiG 29 fighters. At the same time, it signed a secret 10-year lease agreement for two nuclear attack submarines to train its men.

While the Gorshkov has been hit by a five-year delay and massive price overrun, the nuclear submarines are a year behind time and the latest statement has thrown open the debate whether a price renegotiation will be required for the lease also.