Various reports say Russia is now asking for between $2.2 billion and $2.9 billion.

Protracted negotiations, even at the level of the Indian and Russian defence ministers have so far failed to resolve the impasse.

The negotiations were on the final stage in July this year when the Comptroller and Auditor General (CAG) said that the second hand vessel was 60 percent costlier than a new carrier.

The issue had figured in parliament last month, with Defence Minister A.K. Antony saying that a fresh contract for the carrier would be signed after verifying the CAG's findings.

The navy had contested the audit report, with Mehta himself claiming to 'write a cheque' if an aircraft carrier could be found for less than $2 billion.

Originally scheduled to be delivered in 2008, the vessel is now likely to arrive in 2012.