Russia on Monday handed over a nuclear-powered submarine to India at a ceremony near the port of Vladivostok in the country's Far East.

The transfer ceremony was attended by Russian and Indian officials, but was closed to journalists.

Moscow offered the Russian-built Nepra submarine to the Indian Navy on a 10-year lease at a cost of $650 million. However, Indian and Russian media reported that New Delhi may end up paying more than $900 million for the 10-year contract.

India commissioned the 8,140-ton vessel capable of firing a wide range of torpedoes as well as nuclear-tipped Granat cruise missiles, in 2004.

The submarine has been given a new name, Chakra, and is scheduled to leave Russia's territorial waters later this month.