The Oversight Pricing Review Committee, constituted to finalise the price of 68 new aircraft that Air India plans to buy from Boeing, has completed three rounds of talks with the US manufacturers and is expected to arrive at a decision soon.
The Rs 35,000 crore (Rs 350 billion) acquisition plan includes 50 new long range, wide bodied aircraft for Air-India and 18 B737-800W aircraft for Air India Charters Ltd.
The committee is headed by former comptroller and auditor general CG Somiah. "As part of the negotiations, Somiah committee had convened three rounds of meeting with Boeing and engine manufacturers and it is expected to finalise the price soon. The negotiation team is lobbying for a decent reduction of acquisition cost," industry sources said.
When contacted, S Venkat, Air-India Company Secretary, said the deliveries are likely to commence from the later part of 2006.
"Financial arrangements for the acquisition of these aircraft will be tied up to meet the pre-delivery commitments up to 15 per cent of the cost of the aircraft. A letter of intent will be delivered to Boeing and engine manufactures followed by the signing of the purchase agreement once the government approval is received," Venkat