National carrier Air India, which is expected to slash its net losses by around 40 per cent this fiscal, will receive ₹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 on Monday, the Government-run carrier has been allocated ₹1,713 crore as part of the ₹30,0231 crore financial bailout package, reports Firstpost.
The total outlay for the Civil Aviation Ministry stands at ₹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 ₹4,300 crore worth funds from the government for the financial year, starting April 1, 2016 amid its turnaround plan and stiff competition.
The airline is surviving on a ₹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 ₹22,280 crore including ₹3,300 crore in the ongoing fiscal.