"In principle approval has been given subject to final price negotiations by an empowered group of ministers," Civil Aviation Minister Praful Patel said after a cabinet meeting, according to PTI Thursday.
The deal is believed to be worth $8 billion.
The aircraft include 50 long-range jets for Air India - eight 777-200LRs, 15 777-300ERs and 27 of the future 787 Dreamliners -- and 18 737-800s for the low-cost Air India Express.
Delivery of the aircraft starts in 2006 and will last 10 years.
Celebrity Families of 2014 [PHOTOS]