Purchase of expensive aircraft parts to be done after approval from a senior official: Air India

New aircraft parts valued above Rs 10 lakhs and non-aeronautical parts valued above Rs 5 lakh will now only be purchased after approval from the finance director or executive finance director, Air India said on Sunday.

Moreover, the airline in an order said that if the repair of aircraft parts was to cost more than Rs 10 lakh, it must first be approved by the executive director of engineering.

The order was issued by Air India chief financial officer Vinod Hejmadi after Civil Aviation Secretary Rajiv Bansal said the airline’s divestment exercise is expected to be completed within the next 10 weeks. and that only the necessary capital income and expenditure should be made by then.

Bansal is also Chairman and CEO of Air India.

The airline’s order stated that “the purchase of new aircraft parts” and “the purchase of non-aeronautical parts” – which cost more than Rs 10 lakh – must be made after the approval of the “director of aircraft”. Finance or Executive Director Finance ”. “All other contracts with a value of less than Rs 10 lakhs would be issued with the approval of the regional manager of MM (Materials Management)”, indicates the order to which PTI acceded.

On October 8, the Center announced that Talace Private Limited, a wholly-owned subsidiary of Tata Sons, had defeated a consortium led by SpiceJet promoter Ajay Singh by offering Rs 18,000 crore to win the bid for ‘Air India, heavily in debt.

The airline’s order also stated that the “repair of aircraft components”, if it costs more than Rs 10 lakh, must be approved by the executive director of engineering. “All other contracts worth less than Rs 5 lakh would be issued with the approval of the regional engineering manager,” he added.

The order stated that any procurement order or service order issued by any other department, if it costs between Rs 2.5 lakh and Rs 5 lakh, must be approved by the regional finance manager.

“No long-term contract would be entered into by an Air India department,” he said. No capital expenditure exercise would be carried out at Air India without the approval of the CFO or the CFO, he noted.

“In the event of contractual requirements, the contracts would only be concluded for their duration and validity until March 2022 after taking into account the quantity in stock,” he said.

For contracts due to expire shortly, these can be extended until March 2022 at the same rates, terms and conditions, he said.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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