BY : NDTV

India and Russia have finalised a new deal for the aircraft carrier, the Gorshkov.

According to the sources, under the new deal that was hammered out over the weekend, India will pay more for the aircraft carrier.

But in return, the Russians will put in several new parts instead of repairing them as agreed upon in the original contract.

The aircraft carrier was to be delivered by August this year according to a contract signed in 2004 but Russia stunned India in November by demanding more money.

Russia had asked for $ 1.2 billion more for refitting and other works.

NDTV learnt over the weekend that India and Russia agreed on a new deal that will hopefully see the carrier with the Indian navy by 2012.

Now, India will pay possibly up to 800 million dollars more than the original price of 1.2 billion dollars.

For the extra money, the Russians have now agreed to:

* Put in a new arrester gear for the planes
* Build a new ski jump for the MiG-29 planes
* Install new boilers in the engine room
* And lay new cables, estimated at 2,400 km

How much extra India will pay will be decided in March after two more rounds of negotiations take place.

Top Indian Navy officers say even if India pays additional 700-800 million dollars for the new Gorshkov, it will still be worth the cost since a new carrier will cost more than Four billion dollars.