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Rediff News  All News  » Business » Air India to get budgetary support of Rs 6,500 crore

Air India to get budgetary support of Rs 6,500 crore

July 10, 2014 19:54 IST

The government today allocated Rs 9,474 crore (Rs 94.74 billion) to the Civil Aviation Ministry, out of which an equity infusion of Rs 6,500 crore (Rs 65 billion) was earmarked for Air India.

Overall, the government has allocated Rs 9,474 crore for the ministry including investments in public enterprises for the financial year 2014-15, up from revised estimate of Rs 8,502 crore (Rs 85.02 billion) in FY'14.

Please click here for the Complete Coverage of Budget 2014 -15

The government has earmarked Rs 6,500 crore (Rs 65 billion) for equity infusion in Air India and a plan allocation of Rs 569 crore (Rs 5.69 billion) taking the total allocation to the state-owned air carrier to Rs 7,069 crore (Rs 70.69 billion).

Meanwhile, the Airport Authority of India has been provided with budgetary support of Rs 79.70 crore (Rs 790 million), out of which Rs 22 crore (Rs 220 million) has been earmarked for its project at Pakyong, Sikkim. The Directorate General of Civil Aviation has been given a budgetary support of Rs 50 crore (Rs 500 million) to pursue their plan schemes and Rs 40 crore (Rs 40 million) was allocated for Bureau of Civil Aviation to pursue their plan schemes.

Budgetary support of Rs 10,00,000 each was provided to Hotel Corporation India, Aero Club of India and Indira Gandhi Rastriya Uran Akademi.

"Despite increase in air connectivity air travel is still out of reach of a large number of aspirational Indians," Finance Minister Arun Jaitley said. "Scheme for development of new airports in Tier I and Tier II will be launched for implementation through Airport Authority of India or PPPs," Jaitley added.

Moreover, in order to give a major boost to tourism in India, the facility of Electronic Travel Authorization (e-Visa) would be introduced in a phased manner at nine airports in India where necessary infrastructure would be put in place within the next six months, he added.

Please click here for the Complete Coverage of Budget 2014 -15

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