TBM Staff - Mumbai
The budgetary allocation for the civil aviation ministry has been reduced to INR 2,357.14 crore for the current fiscal year ending next March, with the regional air connectivity scheme set to receive INR 502 crore during the same period. The revised budgetary allocation for 2023-24 had previously set the amount for the ministry at INR 2,922.12 crore.
According to the Union Budget 2024-25 documents presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, the ministry will now receive INR 2,357.14 crore. The allocation for the regional air connectivity scheme has been cut to INR 502 crore from INR 850 crore in the revised budgetary allocation for 2023-24.
These funds are earmarked for the revival of 22 airports, the commencement of 124 RCS routes, and Viability Gap Funding for Northeast Connectivity. To further improve connectivity in the northeast region, a new scheme has been formulated to provide air connectivity and aviation infrastructure.
On the other hand, the Production Linked Incentive (PLI) scheme for drones and drone components will receive a higher allocation of INR 57 crore this fiscal year, up from INR 33 crore in the 2023-24 revised estimates. For 2024-25, allocations for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) have been reduced to INR 302.64 crore and INR 89 crore, respectively.
In the budget, INR 57.14 crore has been allocated for the Hotel Corporation of India Ltd to meet its statutory and other obligations under the ministry. Additionally, INR 85 crore has been allocated this fiscal year for providing medical benefits to retired employees of Air India, which was sold by the government to Tata Group in 2022. This amount is up from INR 51 crore in 2023-24.
