The Indian Navy has paid an extra $102m to Russia after an initial payment of $500m to ensure the delivery of the 44,570t aircraft carrier Admiral Gorshkov in December 2012.
According to a report in an Indian daily, Russia had demanded $2bn more from India for the delivery of the warship for which a deal was endorsed at $1.5bn in January 2004.
The ship's outfitting was initially stabilised at $974m and the remainder was reserved for 16 MiG-29K fighters.
India is looking for a total close to $2.2bn to pay for the current refit of INS Vikramaditya, new name for the former Soviet aircraft carrier Admiral Gorshkov.
A senior defence ministry official said that negotiations were in progress to make the final deal at $2.2bn, down from Russia's previous demand of $2.9bn.
Both countries believe the expectations will be centred on the final firm cost by July and the new deal will be sent to the India's Cabinet Committee for approval by the end of July.