In the Union Budget 2023-24, the allocation for the Ministry of Civil Aviation has been reduced to more than halved to Rs 3,113.36 crore, especially owing to a sharp reduction in the amount set aside for Air India Asset Holding Ltd. It includes Rs 3,026.70 crore from revenue and Rs 86.66 crore from the capital.
For the fiscal 2022-23, the revised allocation is Rs 9,363.70 crore which is lower than Rs 10,667 crore estimated earlier.
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Presenting the Budget for FY 2023, Finance Minister Nirmala Sitharaman said that 50 additional airports, heliports, water aerodromes, and advanced landing grounds will be revived for improving regional air connectivity.
Civil Aviation Minister Jyotiraditya Scindia has expressed his gratitude to Prime Minister Narendra Modi and FM Sitharaman for giving a huge impetus to the vision of the Ude Desh ka Aam Naagrik (UDAN).
In a tweet, Scindia said, “Thank you, PM @narendramodi Ji & FM @nsitharaman Ji for the decision to build 50 airports /heliports/water aerodromes. This will go a long way in strengthening regional connectivity.”
In the Financial Year 2022-23, the revised budgetary allocation was Rs 9,363.70 crore, which includes Rs 9,277.24 crore from revenue and Rs 86.46 crore from the capital.
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The budgetary allocation for the Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), and Commissioner for Railway Safety (CRS) is Rs 309 crore, Rs 110 crore, and Rs 19 crore respectively.
An amount of Rs 1,244.07 crore has been allocated for Regional Connectivity Scheme, while Rs 33 crore has been given for Production Linked Incentive (PLI) scheme for Drone and Drone Component.
For two autonomous bodies, (a) Indira Gandhi Rashtriya Udaan Academy and National Aviation University, and (b) Airports Economic Regulatory Authority, an amount of Rs 7.02 crore and Rs 13 crore have been allocated in the latest budget. The government has also allocated a fund of Rs 1,144.49 for Air India Asset Holding Limited (SPV).