"We will take up the matter with the Finance Ministry for an extension of exemption of the withholding tax (rpt an extension of exemption of the withholding tax) on leasing of aircraft," Patel told reporters in New Delhi on the sidelines of an inaugural flight of Air Deccan to Dehradun.

He said this was on the 'wish list' of aviation ministry and was aimed not only for Indian Airlines or Air India but towards all the carriers in the country.

The proposal for imposing tax on leasing of aircraft was introduced by Finance Minister P Chidambaram while tabling the finance bill for 2004-05 in July this year.

After hectic round of parleys with the captains of aviation industry, the proposal, which was scheduled to be implemented from September, was deferred till April next year.

Asked about the status of leasing of aircraft by Indian Airlines and Air India, he said both the public sector undertakings were moving at a fast pace on this issue and at least "we in the Ministry have assured them of faster clearance."

While Indian Airlines has made some headway in leasing of aircraft, Air India Board would be meeting very shortly to finalise it, he said adding "we have conveyed that pre and post public investment board issues will be expedited."

Air India and Indian Airlines are already in the process of expanding their fleet through the dry-lease route. While AI plans to lease 14 aircraft from March next, the domestic carrier is tendering for leasing of 11 A-319s.