The Hindu Business Line : AI Boeing acquisition proposal gets PMO nod

AIR India could soon acquire new Boeing aircraft with the Prime Minister's Office giving its nod for the acquisition proposal to be moved before the Cabinet Committee on Economic Affairs (CCEA).

Sources indicated that it was "very probable" that the CCEA may recommend that the proposal be vetted by an empowered Group of Ministers. It is only after the proposal is cleared by the e-GoM that AI will be in a position to sign a memorandum of understanding with Boeing outlining the payment and delivery schedules.

The AI proposal for acquiring 68 Boeing aircraft, valued at Rs 30,000 crore, has already been cleared by the Public Investment Board.The Minister for Civil Aviation, Mr Praful Patel, had recently written to the Prime Minister, Dr Manmohan Singh, requesting that the proposal be sent to the CCEA or an e-GoM be set up.

Incidentally, the Indian Airlines 43-Airbus fleet acquisition proposal was officially announced by the Prime Minister only after the e-GoM cleared the project.

Meanwhile, the Oversight Committee, headed by the former Comptroller and Auditor General, Mr C.G. Somiah, to look into AI's acquisition proposal, met here on Tuesday to take stock of how the price negotiations were proceeding.

"The price negotiations are still on-going. We had a meeting today to take an overview of how the negotiations are proceeding," Mr Somiah said after the meeting.

While the committee Chairman refused to say anything on whether another meeting would be held, sources indicated that no other meetings have been scheduled.

"No more meetings of committee have been planned although the price negotiations are not yet over. The committee could now firm up its final report that would be placed before the CCEA.

The report will contain the final price of the acquisition. However, officially, the price negotiations will conclude only when AI signs the agreement with the manufacturer," sources said.

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