The proposed deal comes after the two countries agreed on a 10-year military pact in December to cover weapons development, aircraft and maintenance contracts worth more than $5 billion.
The agreement was signed by Prime Minister Manmohan Singh during a trip to Russia, reflecting the former Cold War allies' desire to maintain a close defence relationship.
The deal will be finalised during a visit by a high-level Russian defence team later this week, Sitanshu Kar, a defence ministry spokesman, said in New Delhi.
The navy plans to buy 29 MiG-29 planes.
Russia will also lease to India in 2010 its new Nerpa nuclear-powered submarine, Russian defence officials and Indian naval officers said earlier this month.
Russia, India's close economic and political partner since Soviet days, is one of the world's major arms exporters.
During talks in the capital later this week, the defence officials will ask the Russian delegation to speed up delivery of pending military equipment, another defence official said.
New Delhi also complains of delays in supply of a refitted aircraft carrier, resulting in huge cost overrun and affecting military planning.(Editing by Sanjeev Miglani)