New Delhi, Feb 29: National carrier Air India, which is expected to slash its net losses by around 40 per cent this fiscal, will receive Rs 1,713 crore government funding for the next fiscal.
In the Union Budget for the 2016-17 financial year, presented by Finance Minister Arun Jaitley in Lok Sabha today, the Government-run carrier has been allocated Rs 1,713 crore as part of the Rs 30,0231 crore financial bailout package.
The total outlay for the Civil Aviation Ministry stands at Rs 4,417 crore for the fiscal 2016-17. Organisation such as Airports Authority of India, Directorate General of Civil Aviation, Pawan Hans Ltd, Bureau of Civil Aviation, among others, come under the Civil Aviation Ministry.
Significantly, Air India had earlier this year sought Rs 4,300 crore worth funds from the government for the financial year, starting A[pril 1, 2016 amid its turnaround plan and stiff competition.
The airline is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a period of up to March 31, 2021.
Under the Turnaround Plan (TAP), which runs till March 2021, it has already received Rs 22,280 crore including Rs 3,300 crore in the ongoing fiscal.
Minister of State for Civil Aviation Mahesh Sharma had last week said that Air India losses were expected to come down by 40 per cent to Rs 3,529.80 crore by March this year.
The airline had in the financial year ended March 31, 2015, reported a net loss of Rs 5,859.91 crore. However, its debt burden stood at Rs 51,367.07 crore, including Rs 22,574.09 crore outstanding on account of aircraft loans, in the previous financial year.