Since the 1990s we have been looking at it....The deal has been done in extreme seriousness.'

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

'Russia has demanded a substantial increase. The negotiations on this so far have been inconclusive. Before we take a final decision, we will verify everything (said against the deal), including the report of the CAG,' Antony had said during question hour in the Rajya Sabha.

According to the CAG report, the objective of inducting the Gorshkov in time to fill the gap's in the navy's capabilities had not been achieved due to the delay in the delivery of the warship.

Originally scheduled to be delivered in 2008, this has now been pushed back to 2012.

By the time the aircraft carrier was delivered, the report said, it was not clear how the navy would be able to provide an 'adequate' battle group to the vessel.

According to the CAG's estimates, the indigenous design and construction of a new carrier would cost $1.145 billion. It would take two years to design, eight years to construct and would have a lifespan of 40 years. Against this, the Gorshkov would have an operational span of only 20 years.