Russia and India will also sign an agreement to build new nuclear power plants and another four reactors to the Kudankulam NPP. Medvedev's visit is also expected to bring a number of other trade agreements.
Apart from Kudankulam, the two countries cooperate in a series of large-scale projects, presidential aide Sergei Prikhodko said ahead of Medvedev's visit.
India's state-run oil company ONGC is taking part in the Sakhalin-I oil and gas project in Russia's Far East. Russia and India are also due to build a titanium dioxide plant in the Orissa state, east India, as well as design a multi-purpose cargo aircraft and a fifth-generation fighter.
"The task of increasing bilateral trade between our countries to $10 billion by 2010 is being successfully solved...this year, according to forecasts, trade will exceed $7 billion," Prikhodko said.
Russia's Statistics Service said accumulated Indian investment in Russia totaled $821 million, including $718 million of foreign direct investment. Russia invested $18 million in India in the first half of 2008.
Though Medvedev is not expected to discuss defense contracts in India, he said Moscow and New Delhi must finally agree on revised terms for the delivery of the Admiral Gorshkov aircraft carrier to the Indian Navy and ensure the project is finally implemented.
In an interview with the Indian press earlier on Thursday, Medvedev said Russia was ready to cooperate with India in investigating the attacks in Mumbai, which killed 174 people and left hundreds wounded.
"We are ready for cooperation in all directions to prevent such terror attacks, to investigate the recent act of terrorism and to set up a global anti-terror system," Medvedev said.
Medvedev also proposed easing the visa regime for Russian and Indian businessmen to "benefit our countries and the business community."
The Russian president and Indian Prime Minister Manmohan Singh are currently holding discussions at an informal dinner. The two will hold official talks on Friday, and attend an event to mark the closing of the Year of Russia in India.
