“A successful resolution of all financial issues will allow shipbuilders to take the cruiser for testing in the Barents Sea in 2011. In the winter of 2012, the final finishing work on the ship is planned and by the end of the year it will be ready for transfer to India,” the statement, issued by the Russian shipyard that came under criticism for underestimating the amount of money required to refurbish the carrier, said.

The statement was issued after a joint inspection of the warship by an Indian Navy team led by Vice Admiral Dilip Deshpande, Controller, Warship Production & Acquisition.

The original contract for the ship and its complement of MiG 29 K fighters, signed in 2004, was for $ 1.5 billion and the delivery date was set as August 2008. However, last year, Moscow conveyed that the refit would cost a whopping $1.2 billion more due to an underestimation of the work required to be done. It also said that the carrier would not be available before 2010-2011.

The warship needed new turbines, boilers, 2500 km of cabling and strengthening of its flight deck for operations by fighters as part of the refit.

Meanwhile, the delay in delivery of the warship has landed the Navy in a curious predicament. While the ship is not expected before late 2012 or early 2013, the MiG 29 K ship-borne fighters designed to operate on the Gorshkov are arriving in Goa this month. India is set to get 16 fighters, including four trainers to operate from the ship. The worry now is that the fighters, which have a life of 4,000 flying hours, will be ‘wasted’ on shore duties for the next five years before the ship arrives.