Indian Airlines lets Airbus off Rs 788 crore hook

New Delhi: The CBI is investigating how a clause requiring Airbus, a leading manufacturer of airliners, to invest $ 175 million in India was glossed over in an agreement it signed with Indian Airlines to sell it 43 aircraft in 2006.
Airbus was to invest that money (about Rs 788 crore) in creating training and repairs facilities in India, according to that clause as stated by the government in press statements issued then.
This was mandated by an Empowered Group of Ministers (EGOM), which monitored the purchase because of the sheer size of the deal, and it was endorsed by the Cabinet Committee on Economic Affairs, according to a statement issued by the civil aviation ministry in September 2005.
Indian Airlines was to buy 43 Airbus aircraft — 20 A319s, four A320s and 19 A321s — for $ 2 billion (Rs 9000 crore).
The delivery has already begun.
But the final agreement signed between the two sides “does not clearly mention the commitment of Airbus”, the CBI has said in a Preliminary Enquiry (PE) filed on January 14, No. DAI 1020-A-001.
The PE has been filed against unnamed officials of the civil aviation ministry and Indian Airlines.
“We have replied to the CBI and will provide them with whatever help they require,” said a senior civil aviation ministry official when asked for comments. He did not want to be identified.
The agency files PE as soon as it is convinced there is material evidence to investigate a case. This is turned into a Regular Case if the offence is found serious enough to be sent to court.
29/01/10 Tushar Srivastava/Hindustan Times

To Read the News in full at Source, Click the Headline

Categories: Foreign Jan 2010, NACIL Jan 2010