Budget 2023: Civil aviation ministry gets ₹3,113.36 crore allocation

Budget 2023: Civil aviation ministry gets ₹3,113.36 crore allocation

The allocation for the civil aviation ministry in the Union Budget 2023 has more than halved to ₹3,113.36 crore for next financial year, especially due to a sharp reduction in the amount set aside for Air India Asset Holding Ltd.

For 2022-23, the revised allocation is ₹9,363.70 crore which is lower than ₹10,667 crore estimated earlier.

Also read: Live updates of Budget 2023

The Budget for 2023-24, presented by Finance Minister Nirmala Sitharaman on Wednesday (February 1), has allocated ₹3,113.36 crore for the ministry. This includes ₹3,026.70 crore from revenue and ₹86.66 crore from capital.

The sharp reduction is mainly on account of lower money set aside for AI Asset Holding Ltd (AIAHL), a special purpose vehicle formed by the government and that holds various assets of national carrier Air India.

Also read: Budget offers bounty, but with subtly placed caveats

Tata Group took over the control of Air India in January last year following the governments disinvestment process.

In the latest Budget, ₹1,114.49 crore has been allocated for AIAHL under the public sector undertakings segment of the minister.

Also read: Budget 2023-24: Centre hurtles along infra track with 33% capex hike

For 2022-23, AIAHL was initially allocated ₹9,259.91 crore, which was later revised to ₹7,200 crore. However, this allocation was under the central sector schemes/ projects.

On the other hand, the latest budget has hiked the amount for regional air connectivity to ₹1,244.07 crore for the next financial year starting April 1.

The allocation for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) has been increased to ₹73.74 crore and ₹309 crore, respectively.

In next financial year, Airports Authority of India (AAI) is to raise ₹3,448.21 crore by way of Internal and Extra Budgetary Resources (IEBR).

“Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity,” Sitharaman said in her Budget speech.

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