According to the CAG's estimates, the design and construction of a new aircraft indigenously would cost $1.145 billion and would take two years for design and development and eight years for construction. It would have a life of 40 years.

On the other hand, refurbishment of Gorshkov is estimated to cost around $2.6 billion and will take 46-50 months. The life of the vessel would be only 20 years.

The CAG report also points at the payment terms not directly linked to the physical output.

'Financial control by the Indian side was diluted as payment terms were not linked to physical outputs. Thus, though 66 percent of the contracted cost of repair and refit has been paid, only 35 percent of the work has been completed,' it noted.

Despite the exorbitant price tag, the CAG report points out the carrier has limited operational capabilities and certain key capabilities which would enable the ship 'to meet potential threats or challenges' had either not been provided for or had been postponed to a later date.

Then there are further problems with the acquisition, according to the accounting watchdog.

'The anti-aircraft missile complex selected to be fitted in the ship failed during the trials and the refurbishment contract was concluded without the missile system. This implies that the ship would not have a CIWS (Close-In Weapon System) till her first refit in India in 2017,' revealed the report.

The CIWS is a vital naval shipboard point weapon for detecting and destroying incoming anti-ship missiles and enemy aircraft at short range.