A senior Indian Defense Ministry official said, speaking on condition of anonymity, "We may impose liquidity damages up to 5 percent of the (former Soviet aircraft carrier) Admiral Gorshkov contract worth over $2.3 billion if there are delays in supply of the warship," The Press Trust of India reported.
The Admiral Gorshkov, rechristened INS Vikramaditya, was scheduled for commissioning by Indian navy by December but repeated delays in its upgrading have caused reports to appear in Russian media implying that it will now be delivered in October 2013.
Problems with the carrier's propulsion system are largely responsible for the delay.
Igor Leonov, chief engineer at Russia's White Sea Sevmash shipyard, which is refitting the vessel, said it will take four to five months to repair and replace brickwork that provides thermal insulation for the steam boilers on the INS Vikramaditya.
Notable deaths of 2014 [PHOTOS]