The fleet acquisition programme of Indian Airlines will move one step forward on January 29 when the Public Investment Board takes up the issue to finalise the plan, official sources said on Thursday.
However, the sources were sceptical as to whether IA's plan to acquire 43 Airbus aircraft at an estimated cost of over Rs 10,000 crore (Rs 100 billion) would get government clearance before the likely dissolution of Parliament, in the first week of February.
After the PIB finalises the proposal, it would go to the Cabinet Committee on Economic Affairs for the final nod. Only then, the orders are likely to be placed by IA with Airbus Industrie.
Confirming this at a function of the Indian Association of Tour Operators in New Delhi, civil aviation secretary K Roy Paul said a meeting of the PIB has been fixed "this month end" to consider the IA proposal. However, he pointed out the election schedule could interfere with the process to finalise the proposal.
When asked whether IA's proposal to buy 43 aircraft would get an official nod in its entirety, the sources said, indications are that orders for 28 aircraft would be placed on a firm basis and options would be kept open for the acquisition of the other 15.
This change, the sources said, has been proposed by the Planning Commission.
"In that case, we would have to spend much less to keep the options open for 15 aircraft compared with placing firm orders for the entire 43 aircraft fleet as proposed by the IA board," they said.
However, it was unlikely that the present government and its Cabinet would take a major decision on this count, just before Parliament is likely to be dissolved and fresh round of general elections held, the sources added.
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