In a decisive move, the Civil Aviation Ministry is poised for a financial ascent as the Interim Budget for 2024-25 unveils a substantial allocation of Rs 2,300 crore. The announcement, made by Finance Minister Nirmala Sitharaman on February 1, 2024, delineates a comprehensive budgetary package, encompassing a revenue component of Rs 2,257.79 crore.
Significantly, Air India Asset Holding (AIAHL), the government’s strategic special purpose vehicle (SPV) responsible for managing diverse assets of Air India, emerges as a major beneficiary. AIAHL is slated to receive Rs 1,158.79 crore in the upcoming fiscal year, marking a substantial increase from the previous allocation of Rs 713.92 crore in 2023-24.
Allocations for crucial regulatory bodies within the aviation sector have also been outlined in the budget. The Directorate General of Civil Aviation (DGCA) is earmarked to receive Rs 302.64 crore, underscoring the government’s commitment to ensuring robust regulatory oversight. Simultaneously, the Bureau of Civil Aviation Security (BCAS) is set to receive Rs 89 crore, emphasizing the pivotal role of security measures in the aviation domain.
Furthermore, the budget unveils a noteworthy boost for the burgeoning drone industry. The production-linked incentive (PLI) scheme for drones and drone components sees a commendable increase in allocation, rising to Rs 57 crore for the fiscal year 2024-25, compared to the preceding Rs 33 crore.
This forward-looking budget signifies a substantial financial injection into the aviation sector, reflecting the government’s dedication to fostering growth, innovation, and security within the dynamic realm of civil aviation. As stakeholders eagerly await the tangible impact of these allocations, the stage is set for the Civil Aviation Ministry to chart new heights in the coming fiscal year.