No budgetary support for AI

New Delhi: The Airports Authority of India (AAI) has been provided with Rs 99.15 crore for development of non-metro airports in the Union Budget presented today while cash-strapped Air India didn’t get any budgetary support.
Out of the total Plan outlay of Rs 12,164.76 crore for civil aviation ministry, Rs 190 crore is the budgetary support. National Aviation Company of India Ltd (NACIL), which runs Air India, did not get any budgetary support.
Air India will now have to meet all of its Rs 8,165 crore investment from internal and extra budgetary resources (IEBR).
The carrier has been seeking equity infusion and soft loan from the government to help it meet growing expenses mostly relating to fleet acquisition and interest payments. The abolition of fringe benefit tax (FBT) was welcomed by the industry as airlines were so far paying FBT on expenses incurred on hotel stay for their cabin and cockpit crew in India and abroad.
Of the total budgetary support for AAI, Rs 20 crore has been earmarked for the development of airports in the north-eastern states.
The remaining amount of Rs 79.15 crore is for development of airports in other crucial areas such as Jammu, Srinagar, Aggtti and Puducherry airports.
06/07/09 The Statesman

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Categories: NACIL Jul 2009