To improve regional air connectivity, the Narendra Modi Government will revive 50 additional airports, heliports, water aerodromes and advanced landing grounds in the next financial year.
The announcement was made by Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2023-24. The announcement is part of a target to operationalise 1,000 UDAN routes during the currency of the scheme.
The allocation for the Civil Aviation Ministry in the Union Budget has more than halved to `3,113.36 crore for 2023-24 (`3,026.70 crore from revenue and `86.66 crore from capital), especially due to a sharp reduction in the amount set aside for Air India Asset Holding Ltd. For 2022-23, the revised allocation is `9,363.70 crore which is lower than `10,667 crore estimated earlier.
The sharp reduction is mainly on account of lower money set aside for AIAHL, a special purpose vehicle formed by the Government and that holds various assets of national carrier Air India.
“Fifty additional airports, heliports, water aerodromes and advanced landing grounds will be revived for improving regional air connectivity,” Sitharaman said in her Budget speech. Over the past few years, the Government has been taking various initiatives, especially the UDAN (Ude Desh ka Aam Naagrik) scheme, to boost regional air connectivity. Besides, she said that 100 critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertiliser, and food grains sectors have been identified. “They will be taken up on priority with investment of Rs 75,000 crore, including Rs 15,000 crore from private sources,” she added.
In a series of tweets, Civil Aviation Minister Jyotiraditya Scindia said the Budget is rightly focused on consumption and investment stimulus, and more money in the hands of the growing middle class. “#AmritKaalBudget strikes a fine balance b/w uplifting women, youth, Kisan & the middle class, unleashing the animal spirits of MSMEs, and fiscal consolidation. A “progressive” budget that ticks all the boxes & powers India’s growth drive. A budget for all! @nsitharaman,” Scindia said.
He also said the Budget gives a huge impetus to the vision of Ude Desh ka Aam Naagrik (UDAN). “Thank you, PM @narendramodi Ji & FM @nsitharaman Ji for the decision to build 50 airports/heliports/water aerodromes. This will go a long way in strengthening regional connectivity,” he added.
As per the Budget document, the allocation for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) has been increased to Rs 73.74 crore and Rs 309 crore, respectively. In the next financial year, Airports Authority of India (AAI) is to raise Rs 3,448.21 crore by way of Internal and Extra Budgetary Resources (IEBR).
In the previous Union Budget, the Finance Minister had allocated Rs 10,667 crore for the Civil Aviation Ministry. The regional connectivity programme UDAN (Ude Desh ka Aam Naagrik) will get Rs 600.7 crore of the overall allocation, while AI Asset Holdings Ltd will receive Rs 9,259 crore for servicing the loans transferred to the special purpose vehicle (SPV) for the financial restructuring of Air India.
UDAN flights have transported almost close to 1.15 crore people in the last six years. In her first address to the joint sitting of Parliament on Tuesday, President Droupadi Murmu said the country’s aviation sector is growing rapidly.
“Up to 2014, the number of airports in the country was 74, it has now increased to 147. Today India has become the third-largest aviation market in the world. The UDAN Yojana has played an important role in this regard,” she had said.
