The Cabinet had approved the plan to purchase the aircraft on December 15, subject to a final round of price negotiations. Air-India aims to place about $8 billion of orders with Boeing.
Prime Minister Manmohan Singh will approve the purchase plan next week and Air-India will start taking deliveries of planes in November 2006 through 2011, Patel said.
Boeing and General Electric, which makes aircraft engines, will in return invest as much as $205 million on facilities in India, Patel said, without elaborating.
The plan, the biggest order by an Indian carrier, had received the approval of the Public Investment Board in October. Air-India is seeking to buy 50 planes for itself and 18 planes for its low-fare unit Air India Express. Air-India needs new planes as some of its planes are about 17 years old.