The government on Thursday empowered a Group of Ministers (EGoM) to drive a bargain with Airbus Industrie to get a lower price for the 43 aircraft that Indian Airlines plans to induct to replace its ageing fleet.The Cabinet Commitee on Economic Affairs (CCEA) referred the aircraft acquistion to an Empowered GoM after a couple of parliamentarians pointed out that Airbus was offering a lower price for a similar deal with a Southeast Asian airline.The EGoM will ‘‘hold one final round of negotiations with Airbus on a time-bound basis so that a final decision can be taken,’’ Finance Minister P. Chidambaram said after the CCEA meeting.‘‘This is last mile (negotiations) as there is still one or two grey areas to be addressed,’’ Chidambaram said, adding the EGoM’s decision ‘‘could come in as early as three weeks’’.IA plans plans to acquire 43 Airbus aircraft of different types at a total cost of Rs 10,237 crore. It would comprise 19 A-319s, four A-320s and 20 A-321 aircraft. IA had made its last purchases of planes in 1994.Meanwhile, CCEA announced that it would infuse Rs 500 crore as capital in Punjab & Sind Bank (PSB). It also approved an over Rs 100 crore package for Kolkata-based Bridge & Roof Company India Ltd.The Rs 500 crore capital infusion from the government would enable PSB to come out of the red and tap the capital market by 2007.CCEA has given post-facto approval to the package, Chidambaram said.He said the capital infusion was part of the first batch of supplementary demand for grants. The package would enable the bank to come out of ‘‘narrow banking’’ and the embargo of ‘‘prompt corrective action’’.With the capital infusion, PSB’s gross non-performing assets (NPAs) will come down to 8 per cent while net NPAs will slide to 2 per cent by 2007-08. In Bridge and Roof’s case, the Cabinet, which met under the chairmanship of the Prime Minister, approved a plan assistance of Rs 60 crore for the company — Rs 30 crore each for equity and loan, Chidambaram said. He added that the government would also convert its outstanding loans worth Rs 11.01 crore into equity. The government would waive the company’s outstanding interest of Rs 31.91 crore.
