New Delhi: The civil aviation ministry will seek Rs 1,000 crore in the upcoming budget for creating an 'air services fund', which it intends to use to support airlines offering connectivity to underserved regions of the country, a senior ministry official said.
"The request for such a fund came in our meetings with the representatives of the industry and we are going to send this proposal to the finance ministry as part of our budget proposal," the official said, requesting anonymity.
The largest allocation to the ministry in the past few budgets had been the equity infusion in Air India. But this is expected to come down by over a half from the next fiscal. The government had allocated Rs 6,500 crore for equity infusion in the national carrier in the current fiscal. This is likely to fall to Rs 2,500 crore in 2015-16.
The finance ministry has also informed the ministry that Air India will not get Rs 720 crore of the Rs 6,500 crore scheduled for the current fiscal. The money may, however, be released, if the government has surplus from other ministries.
05/02/15 Mihir Mishra/Economic Times
"The request for such a fund came in our meetings with the representatives of the industry and we are going to send this proposal to the finance ministry as part of our budget proposal," the official said, requesting anonymity.
The largest allocation to the ministry in the past few budgets had been the equity infusion in Air India. But this is expected to come down by over a half from the next fiscal. The government had allocated Rs 6,500 crore for equity infusion in the national carrier in the current fiscal. This is likely to fall to Rs 2,500 crore in 2015-16.
The finance ministry has also informed the ministry that Air India will not get Rs 720 crore of the Rs 6,500 crore scheduled for the current fiscal. The money may, however, be released, if the government has surplus from other ministries.
05/02/15 Mihir Mishra/Economic Times
No comments:
Post a Comment