Russia then offered us the ship as a gift (after paying for its retrofit and the aircraft it will carry).

'The government of the day took a decision and the contract was signed in 2004,' Antony explained.

The CAG thinks differently.

'The cost of acquisition has more than doubled to USD 1.82 billion (for the refit) in four years. At best, Indian Navy would be acquiring, belatedly, a second-hand ship with a limited life span by paying significantly more than what it would have paid for a new ship,' it said in its report released July 24.

'It can be seen that Indian Navy was acquiring a second-hand refitted aircraft carrier that had half the life span left and was 60 percent more expensive that a new one,' the report maintained.

The report also pointed out the carrier would have limited operational capabilities and certain key capabilities which would enable it 'to meet potential threats or challenges' had either not been provided for or been postponed to a later date.

'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,' the report pointed out.

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

The carrier was scheduled to have been delivered in 2008. This has now been pushed back to 2012, with the vessel becoming due for its first refit in India in 2017.