“You have to see where our relationship with Russia going. A lot depends on it,” the Navy Chief said, when asked about the Russian demands of an additional $1.2 billion for completion and delivery of the 48,500-tonne carrier renamed as ‘INS Vikramaditya’. The Navy chief’s public admission — first by a high-ranking government official — is a cause enough for reflection in the government circles about changes in Indo-Russia ties with New Delhi’s growing proximity with Washington.

“We have taken a conscious decision of not putting all eggs (related to security matters) in one basket,” Mr Mehta said, possibly indicating at India’s new-found friendship with USA and Israel.

The Russians have demanded an additional $1.2 billion (the original bill inked in 2004 was valued at $1.6 billion) and more time to complete the project in which Indian Navy has already invested $500 million.

The navy is against reopening the Gorshkov negotiation, as it will lead to similar cost escalation issues in other projects. 

Defence Minister A K Antony said in Gangtok on Saturday that the UPA government is pursuing the Gorshkov issue at the “highest level of Russian government.”

Other military projects  which are at jeopardy are acquiring of three additional stealth frigates, refitting IL-38 aircraft with Sea Dragon radar for spotting submarines and purchase of MiG 29K for the carrier.