The civil aviation ministry is considering doing away with the government approval needed for aircraft purchases, a move which will help airlines speed-up fleet expansion in a market growing at 20% a year. 

India's aviation sector was opened to private players several years ago, but aircraft procurement still needs government clearance. An airline planning to buy aircraft can enter into a memorandum of understanding (MoU) with a manufacturer, but it must take the aviation ministry's in-principle approval before placing the order. 

"We are reconsidering the requirement for this approval, as an aircraft order is purely a commercial agreement between two parties and companies should be free to do so. We should arrive at a decision by next month," a senior civil aviation ministry official said. 

Removing the administrative barrier would shorten the time needed for getting aircraft into the country and put Indian carriers on a par with international players, said an airline's CEO, who did not want to be named. "No other country, to my knowledge, requires airlines to seek such an approval. 

Sometimes, aircraft manufacturers become uncomfortable when we tell them that we are keen on a deal, but wait, we need to go back and take a government approval," the executive said. The issue of in-principle approval surfaced with reference to recent reports that low-cost airline GoAir's aircraft order had hit regulatory hurdles, as it was placed without the ministry's approval. 

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