New Delhi, 1 Feb (.) A total of Rs 2,103 crore allocation has been proposed for the Ministry of Civil Aviation in the union Budget for the Financial Year 2026–27. This includes Rs 2,058 crore for revenue expenditure and Rs 45 crore for capital expenditure.
Notably, Rs 890 crore will be spent on liabilities and commitments related to Air India, which the government has sold to the Tata Group.
A provision of Rs 758.39 crore has been proposed for Air India Asset Holding Limited, the special purpose vehicle created to take over Air India’s debt incurred during its period as a public sector company, to service those liabilities.
The budget also provides Rs 132 crore for medical facilities for retired employees of Air India.
To enhance air connectivity to small and medium-sized cities, the allocation for the Regional Connectivity Scheme (RCS) UDAN has been increased to Rs 550 crore, compared to Rs 435 crore in the current financial year.
Under the RCS, the government spends on developing small airports to start regular flight operations and also provides support for the development of aviation infrastructure in the northeastern states.
The allocation for the Directorate General of Civil Aviation (DGCA) has been increased from Rs 330 crore to Rs 342 crore.
For the Bureau of Civil Aviation Security, a provision of Rs 114 crore has been made, compared to Rs 88 crore in the current financial year.
. DSV RB 1617