Click to play videoMoscow: There is more uncertainty over India's plan to acquire second-hand Russian aircraft carrier, Admiral Gorshkov.
Russia has threatened to call off the deal if it is not paid $2 billion more than the contracted price.
A Russian Defence Ministry official has told news agencies in Moscow that Admiral Gorshkov will be given to the Russian Navy if India does not agree to pay the revised price.
"If India does not pay up, we will keep the aircraft carrier," the officials was quoted as saying by the Russian News & Information Agency (RIA Novosti).
"Construction of the ship will be completed in 2010 and tests will start in 2011, while in 2012 it will be transferred to the Indian Navy," Director of Russian shipyard Sevmash chief Nikolai Kalistratov said.
However, another shipyard executive was quoted by RIA Novosti as saying that the market dictated that India should pay a further $2 billion.
"The market price of such an aircraft carrier varies between $3 billion and $4 billion. The ongoing maintenance and upgrade makes up 60-70 per cent of the new carrier's cost. This is about $2 billion," said Sergei Novoselov, Deputy General Director of Sevmash.
The contract for the sale of the retrofitted Gorshkov to India was signed in January 2004 for a reported $1.5 billion. The 44,500 tonner Kiev class aircraft carrier was to be initially commissioned as INS Vikramaditya in August 2008, which included the refit of the vessel and supply of 16 MiG-29K fighters.
But in late 2007, Russia demanded more money and informed India that the aircraft carrier would not be available before 2012.
Under pressure, India agreed to renegotiate the price but no agreement has been reached despite months of hard bargaining.
Indian observers are interpreting the Russian threat as a pressure tactic. The Indian Navy urgently needs a replacement for its sole carrier, the ageing INS Viraat, which is on a life extension.
After modernisation, the carrier is expected to be seaworthy for 30 years.
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