The Union Budget has allocated Rs 10,667 crore for the civil aviation ministry for 2022-23, according to the document presented by Finance Minister Nirmala Sitharaman on Tuesday.
Out of the total allocation, Rs 600.7 crore has been earmarked for the regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik), while Rs 9,259 crore goes to AI Asset Holdings Limited for servicing the loans transferred to the special purpose vehicle (SPV) for the financial restructuring of Air India.
An amount of Rs 165 crore has also been set aside for the medical benefits of retired Air India employees, the Budget document said.
In 2021-22, the civil aviation ministry was allocated Rs 3,224 crore, however, the government incurred high expenses during the divestment of Air India and, as a result, the revised expense for the civil aviation ministry during 2021-22 stood at Rs 72,652 crore.
While most airlines and airport operators in India have hailed the government's call to develop infrastructure and increased capital expenditure allocation, most of them were also disappointed with no support from the government for the sector.
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