The Finance Minister of India, Nirmala Sitharaman has announced Budget 2021-22 for India yesterday on 1 Feb 2021.
In the budget, the Aviation industry has received ₹3,797 crores this year. That is 2.62 per cent more than ₹3,700 crores allotted in the Fiscal Year 2020-21.
In addition, the government has allocated 810 crore in this year’s budget for the purchase of two B777 aircraft (earmarked for the travel of Prime Minister Narendra Modi, President Ram Nath Kovind and Vice President M. Venkaiah Naidu), which is well over Rs. 272 crore allocated in 2019-20. They currently fly Air India’s B747 aircraft, which bear the callsign “Air India One”.
Air India Asset Holding Ltd, a special purpose vehicle (SPV), has been set up as part of financial restructuring of the debt-laden national carrier, which has an allocation of ₹2,205 crore this fiscal.
Also Read: Key Highlights of Union Budget 2021-22
The budget includes a tax exemption for aircraft leasing rentals, capital gains tax vacation for aircraft leasing companies, and the Airport Authority of India’s asset monetization in Tier II and Tier III cities.
Turbine Fuel under the GST structure and a cut in excise duty were among the key demands that were made in the earlier Budget, but have not been touched upon in this year’s Budget.
Further, the government has allocated ₹465 crores for its regional connectivity scheme UDAN, which is 3.1 per cent higher than what was allocated in 2020-21.