Monday, February 29, 2016

Budget 2016: Air India to receive Rs 1,713 crore

National carrier Air India, which is expected to slash its net losses by around 40 per cent this financial year, will receive Rs 1,713 crore government funding for the next financial year.

In the Union Budget for the 2016-17 financial year, presented by Finance Minister Arun Jaitley in Lok Sabha on Monday, the Government-run carrier has been allocated Rs 1,713 crore as part of the Rs 300,231 crore financial bailout package.
The total outlay for the Civil Aviation Ministry stands at Rs 4,417 crore for the financial year 2016-17.

Organisation such as Airports Authority of India, Directorate General of Civil Aviation, Pawan Hans Ltd, Bureau of Civil Aviation, among others, come under the Civil Aviation Ministry.

Significantly, Air India had earlier this year sought Rs 4,300 crore worth funds from the government for the financial year, starting April 1, 2016 amid its turnaround plan and stiff competition.

The airline is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a period of up to March 31, 2021.
Under the Turnaround Plan (TAP), which runs till March 2021, it has already received Rs 22,280 crore including Rs 3,300 crore in the ongoing financial year.
29/02/16 PTI/Business Standard
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