Moscow, Sep 3 (RIA Novosti) A new deal between India and Russia on the funds for the refit of aircraft carrier Admiral Gorshkov will be signed in mid-October, the head of the state technology corporation said Thursday.

'An additional agreement will be signed,' Sergei Chemezov, head of Rostekhnologii, told a news conference in Moscow.

Under the original $1.5 billion 2004 contract between Russia's state-run arms exporter Rosoboronexport and the Indian Navy, which includes delivery of MiG-29K Fulcrum carrier-based fighters, the work on the aircraft carrier was to have been completed in 2008.

However, Russia later claimed it had underestimated the scale and the cost of the modernisation, and asked for an additional $1.2 billion, which New Delhi said was 'exorbitant'.

After long-running delays and disputes, India offered in February 2008 to raise the refit costs for the aircraft carrier, docked at the Sevmash shipyard in northern Russia for the past 12 years, by up to $600 million.

Russia said it was not satisfied with the proposed amount and the issue of the additional funding remains unresolved.

Talks on the additional funding agreement are currently underway. Russia has pledged to finish the Admiral Gorshkov's overhaul as soon as possible and deliver it to India in 2012 if the additional $1.