Union Budget 2017: More airports in tier II cities

Seeking to make travel between tier-II cities faster, the centre has proposed developing airports in partnership with private players. As part of the regional connectivity plan, Finance Minister Arun Jaitley announced in the Budget that select airports will be developed and maintained under PPP mode.

"Airport Authority of India Act will be amended to enable effective monetisation of land assets. The resources, so raised, will be utilised for airport upgradation," Jaitley said while presenting the budget. Experts said the boost to the aviation sector will be crucial for the growth of transport sector. This will also create competition among different modes of transport as it will also prove to be less time consuming. The Civil Aviation Ministry received a substantial increase of over 22 per cent in budgetary allocation at Rs 5,167.60 crore for the next financial year.

Out of the ministry's total allocation, a good chunk will be for Air India, which is to get Rs 1,800 crore. The amount will be extended to the national carrier as part of the bailout package announced by the then UPA government in 2012. Besides, the airline will be given Rs 508 crore as part of investment in public enterprises. National airports operator AAI has been allocated Rs 2,543 crore, apart from a budgetary support of Rs 100 crore.

Meanwhile, the budgetary funds for aviation watchdog DGCA has been stepped up significantly to Rs 230.56 crore for 2017- 18. The amount is at Rs 29.67 crore for the current fiscal. Significantly, UN aviation watchdog, International Civil Aviation Organisation (ICAO) is scheduled to audit India's air safety preparedness in the second half of this year.

The Bureau of Civil Aviation Security (BCAS), the country's apex aviation safety agency, has been allocated Rs 214.50 crore in the latest Budget. The government-owned airline has been allocated Rs 1,800 crore as part of the Rs 30,0231 crore financial bailout package. Air India had asked for Rs 2,844 crore as equity from the government for the fiscal year starting April 2017. The airline is surviving on a  Rs 30,231-crore bailout package extended by the previous UPA government in 2012, staggering over 10 years.