The Public Investment Board on Wednesday cleared Indian Airlines' proposal to purchase 43 aircraft at a cost of Rs 9475 crore (Rs 94.75 billion) and decided to recommend sovereign guarantee for the entire fleet acquisition plan.

"PIB has cleared the Indian Airlines proposal (for purchase of 43 aircraft), paving the way for approaching the Cabinet Committee on Economic Affairs," secretary (expenditure) D Swarup, who chaired the two hour-long meeting of the PIB, said.

Asked by when the proposal would be taken up by the CCEA, he said it would depend on how soon the civil aviation ministry takes up the matter.

To a query as to whether the government would provide sovereign guarantee to the fleet acquisition plan, Swarup said, "PIB will recommend sovereign guarantee".

Civil aviation secretary Ajay Prasad, who was also present, said while the earlier price of purchasing 43 aircraft, a mix of Airbus fleet of A-319s, A-320s and A321s, was Rs 10,089 crore (Rs 100.89 billion), it had now come down to Rs 9475 crore.