The decision by the Cabinet Committee on Divestment on Tuesday to strike off Indian Airlines and Air-India from the divestment list may prompt the clearance of Rs 23,000 crore (Rs 230 billion) in this fiscal for the expansion of their fleets.

To expedite the acquisition process, the pre-Public Investment Board meeting for Indian Airlines has been slated for April 25.

While Indian Airlines' budget for the proposed expansion is Rs 10,089 crore (Rs 100.89 billion), Air-India's is Rs 13,000 crore (Rs 130 billion). Both the deals will, however, still require a clearance by the Cabinet Committee on Security.

Civil aviation  ministry officials said they hoped the purchase process would be over within this year and that the two airlines' acquisition plans might not be clubbed.

"We had earlier sent both the proposals together to the Cabinet Committee on Security, but now we might forward the purchase proposal that was ready first," sources said.

This means the Indian Airlines proposal may get the nod first. Its board has already cleared the acquisition of 43 aircraft. However, the Air-India board is yet to take a decision on technical aspects.

The last time Indian Airlines bought aircraft was in 1994. Air-India's last fleet expansion was in 1996. Thus both airlines are using aircraft over a decade old.

However, the civil aviation ministry is yet to draw up financing plans for buying the planes. Till now, it has only obtained an approval for Rs 325 crore (R%s 3.25 billion) additional equity for Indian Airlines.

The Indian Airlines board had cleared the proposal for the acquisition of the aircraft in March 2001.

The acquisition was to be spread over a five-year period from 2003 to 2008. The board had said Airbus A-320s (148 seats), A-319s (120 seats) and A-321s (180 seats) would be ideal for the carrier.

The Indian Airlines board had also shortlisted CFM as the aircraft engine manufacturer. CFM is a company jointly owned by Snecma and GE.

The Air-India board had approved the acquisition of 250-seater longhaul aircraft, for which it had shortlisted the Airbus A-340 300 and Boeing 777-200 extended range. Later, the board decided to place orders for 10 aircraft, and kept the purchase of 7 optional.

Besides 30 A-320s inducted between 1989 and 1994, Indian Airlines' ageing fleet also comprises five A-300s (over 20 years old) and 11 Boeing-737s (21 years old).

Air-India's fleet comprises four B 747-200s (22.5 years old),  three A-300 B4s (19.7 years old), eight A-310s (14.9 years old) and six B 747-400s (7.5 years old).

The Air-India board has also decided to acquire 17 shorthaul aircraft (150-seaters), for which it has shortlisted the Airbus A-320 and Boeing 737-800. The techno-economic bids for these aircraft have been called.