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General Budget: A Substantial Boost to Civil Aviation Sector


The Government has allocated Rs. 9,474 crore for the Civil Aviation Ministry, including investments in public enterprises for the financial year 2014-15, up from revised estimate of Rs. 8,502 crore in fiscal 2013-14. The government has earmarked Rs. 6,500 crore for equity infusion in Air India and a plan allocation of Rs. 569 crore, taking the total allocation to the state-owned air carrier to Rs. 7,069 crore. Meanwhile, the Airport Authority of India has been provided with a budgetary support of Rs. 79.70 crore, of which Rs. 22 crore has been earmarked for its project at Pakyong, Sikkim.

The Government will develop airports in metros and non-metro cities through public-private partnership mode to enhance air connectivity. India plans to build 200 low-cost airports in the next 20 years to connect tier-II and tire-III cities. The Government also plans to construct 15 additional airports under the Greenfield airport policy by identifying the most suitable low cost viable model. Budgetary support of Rs. 50 crore has been provided to Directorate General of Civil Aviation to pursue their plan scheme.

As provision of Rs. 40 crore has been made for Bureau of Civil Aviation Security for meeting expenditure towards their plan schemes. A Budgetary support of Rs. 0.10 crore has been provided to Hotel Corporation of India for renovation of its Hotels/flight kitchen. Aero Club of India has been provided grants-in-aid of Rs. 0.10 crore. The Indira Gandhi Rashtriya Uran Academy is being provided with grants of Rs. 0.10 crore