Putin, who arrived here early Friday morning, will build on a relationship he revived in the post-Boris Yeltsin era and is eyeing space, energy and defense contracts, which have been Russia 's traditional strengths, said the sources.

Russia and India are also expected to sign up to 15 agreements worth 10 billion U.S. dollars.

Setting a positive tone for Friday's talks, India's Cabinet Committee on Security cleared the 2.35 billion U.S. dollar fresh price for Admiral Gorshkov aircraft carrier.

The long-delayed renegotiated pact for the carrier, renamed INS Vikramaditya, is among the defense deals that the two countries will sign.

Indian Prime Minister Manmohan Singh hopes that trust between India and Russia comes handy when he discusses India's policy on Afghanistan.

"India and Russia have common concerns on Afghanistan and Afghanistan-Pakistan issue. Both agree on the need for strong international co-operation against terror and the financing of terrorism," said Ministry of External Affairs spokesperson Vishnu Prakash.

Both the countries will also sign an umbrella civil nuclear deal.

India is likely to buy an additional 29 more MIG-29K fighters for its Navy. Both the countries will also finalize the deal to jointly develop a fifth generation fighter and a transport aircraft.

Russia will also get to construct two additional nuclear reactors at Kudankulam in Tamil Nadu, southern India. Putin will push for a prime ministerial nod on a controversial Russian contract with National Thermal Power Corporation (NTPC). Russia wants more than the contracted price amid allegations of massive pay offs.

Apart from this, India is eyeing an increased stake in Russia's oil and gas fields along with collaboration in a Russian global satellite navigation system.