Talks on the issue between Defence Ministry's Contract Negotiation Committee (CNC) and a Russian team were concluded recently, Defence Ministry sources said here.

The proposal will now be sent to the Finance Ministry and after getting clearance from there, the Cabinet Committee on Security will take a final call on the issue, they added.

The aircraft carrier is expected to join the Indian Navy fleet in 2012 as 'INS Vikramaditya'.
The two countries have been renegotiating the deal since 2007 after Moscow demanded an additional USD 1.2 billion for the warship. Later, the demand was increased to USD 2.9 billion for refitting and refurbishing the aircraft carrier.

The deal finalised during the NDA regime in January 2004 and India had paid USD 1.5 billion for the warship and 16 MiG 29K fighter aircraft.

Of this amount, USD 948 million were paid for refitting the 44,500 tonne vessel and the balance was for the combat jets and Kamov anti-submarine warfare helicopters to be deployed on the ship.

During Prime Minister Manmohan Singh's visit to Russia earlier this month, officials had said the two countries have ended the stalemate over the contentious price and technical issues for aircraft carrier.