Civil Aviation Ministry Sees Reduced Allocation, Focus Shifts to Drone PLI Scheme

The Civil Aviation Ministry's budgetary allocation has been slashed to Rs 2,357.14 crore for the fiscal year ending March 2025. The regional air connectivity scheme will receive Rs 502 crore, while the PLI scheme for drones gets an increased allocation. The budget also includes funds for the DGCA, BCAS, and Air India retirees.

The Civil Aviation Ministry's budgetary allocation has been reduced to Rs 2,357.14 crore for the current fiscal year ending next March, with the regional air connectivity scheme allocated Rs 502 crore during the same period.

During the presentation of the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, it was revealed that the ministry's revised allocation for 2023-24 stood at Rs 2,922.12 crore, now decreased to Rs 2,357.14 crore.

The funds for the regional air connectivity scheme have been cut to Rs 502 crore from Rs 850 crore, aimed at reviving 22 airports and commencing 124 RCS routes, including Viability Gap Funding for North East Connectivity. A new scheme focuses on improving aviation infrastructure in the northeast region.

In a contrasting move, the Production Linked Incentive (PLI) scheme for drones and drone components will see an increased allocation of Rs 57 crore this fiscal, up from Rs 33 crore in the 2023-24 revised estimates.

Allocations for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) have also been reduced to Rs 302.64 crore and Rs 89 crore, respectively.

An amount of Rs 57.14 crore has been earmarked for the Hotel Corporation of India Ltd to meet its statutory and other obligations under the ministry. Additionally, Rs 85 crore has been allocated for providing medical benefits to retired employees of Air India, up from Rs 51 crore in 2023-24.

(With inputs from agencies.)