New Delhi: The aviation sector in India lost more than Rs 24,000 crore during the course of the most recent two fiscal years, 2020–22.
According to the Union Ministry of Civil Aviation, the sector lost Rs 12,479 crore in FY 2020–21 and Rs 11,658 crore in FY 2021–22.
The Ministry stated that the Center has launched a number of efforts to boost the aviation sector in a statement to the Lok Sabha on Thursday.
State governments and union territories that impose high VAT on aviation turbine fuel (ATF) accepted the reduction in VAT on ATF.
As a result, 17 states and UTs have cut their ATF VAT.
According to the response, the Goods and Services Tax (GST) rate has been lowered for residential Maintenance, Repair, and Overhaul (MRO) services from 18% to 5%.
The Ministry added that the Airports Authority of India (AAI) and other airport developers have projected a capital spend of around Rs 98,000 crore over the next five years for operations such as the reinforcement of runways and the development and alteration of new and existing terminals.
According to the Ministry, the Emergency Credit Line Guarantee Scheme (ECLGS) for the aviation industry has also been authorised by the Center.
The scope of ECLGS has been expanded in response to market demand to offer credit support to these companies up to 100% of their total credit outstanding (both fund-based and non-fund based outstanding) as of reference dates, subject to a cap of Rs. 1,500 crore per borrower, or whatever is lower, it said in its announcement.
