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Finance Minister Nirmala Sitharaman proposed the revival of fifty additional airports, heliports, waterdromes and advance landing grounds to improve regional air connectivity.
The regional connectivity scheme of the Ministry of Civil Aviation has doubled the allocation since the last allocation and has increased from ₹600 crore to ₹1,244 crore. However, after the privatization of Air India, the total budgetary allocation for the ministry was reduced by 70% on the basis of lower liabilities. The ministry has received a total of Rs 3,113 crore for the financial year 2023-2024, while the budgetary allocation in the previous financial year was Rs 10,667.
Air India Asset Holding Limited (AIAHL), or a special purpose vehicle of the government where all liabilities and assets belonging to Air India are parked, was allocated ₹9,259 in the last financial year to repay the airline’s debt. This financial year, AIAHL has been allocated only ₹1,144 crore for interest payment of non-convertible debentures.
While heliports and waterdromes have received attention under the regional connectivity plan launched in 2017, only nine heliports and two waterdromes have come up so far and not all of them are operational.