The government has announced a new scheme to develop airports in metro and non-metro cities through public-private partnership (PPP) to enhance air connectivity.
It has also hiked allocation for the civil aviation sector by over 11.4 per cent to Rs 9,474 crore.
"Despite increase in air connectivity, air travel is still out of reach of a large number of aspirational Indians. Scheme for development of new airports in Tier I and Tier II (cities) will be launched for implementation through Airport Authority of India and PPPs," Finance Minister Arun Jaitley said while delivering his Budget speech on Thursday.
The government has been working towards increasing air connectivity in the country and is planning to increase the number of airport in metro and non-metro cities. The ministry has been allocated Rs 9,474 crore in the Budget against Rs 8,502 crore provided to it in the last fiscal year.
Of the Rs 9,474 crore, Rs 6,720 crore is for Plan expenditure whereas Rs 2,754 crore is for non-plan expenditure. Under the Budget, the official airliner Air India has been allocated Rs 7,069 crore for its operations whereas the Airports Authority Ltd has been granted Rs 2,134 crore.
The allocation for Air India has been increased only by Rs six crore from the last fiscal year. Pawan Hans Helicopters Limited has received a substantial hike from Rs 8.67 crore last year to Rs 46 crore this year.
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