The Minister of Finance of India Nirmala Sitharaman announced Budget 2020-21 for India yesterday.
Ministry of Civil Aviation has been allocated ₹3,797 crore in this year’s Budget. This is 2.62 per cent higher than ₹3,700 crore which was allocated in the 2019-20 fiscal year.
Additionally, for the purchase of two B777 aircrafts (which would be for travel of Prime Minister Narendra Modi, President Ram Nath Kovind and Vice President M. Venkaiah Naidu) the government has allocated ₹810 crore in this year’s Budget that is significantly higher than ₹272 crore allocated in 2019-20. Currently, they fly on Air India’s B747 planes, which have the call sign of “Air India One”.
Further, the government has allocated ₹465 crore for its regional connectivity scheme UDAN, which is 3.1 per cent higher than what was allocated in 2019-20.
For the disinvestment of the national carrier Air India, Air India Asset Holding, 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.
The budget has offered tax exemption for aircraft lease rentals, tax holiday for capital gains for aircraft leasing companies, and monetisation of Airport Authority of India Assets 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.