Indian aviation industry suffers over Rs 240 bn loss in 2020-22
AVIATION & AIRPORTS

Indian aviation industry suffers over Rs 240 bn loss in 2020-22

India's aviation industry suffered a loss of over Rs 240 billion in the last two financial years during 2020-22.

As per the Union Ministry of Civil Aviation, the industry in FY 2020-21 suffered a loss of Rs 124.79 billion and in FY 2021-22 it was Rs 116.58 billion.

In a reply at the Lok Sabha, the Ministry said the Centre has taken various initiatives to support the aviation industry. The reduction in VAT on Aviation Turbine Fuel (ATF) was taken up with state governments and union territories levying high VAT on ATF. As a result, VAT on ATF has been reduced by 17 states and UTs.

The reply said that the GST rate has been reduced from 18 per cent to 5 per cent for domestic Maintenance, Repair and Overhaul (MRO) services.

The Ministry further informed that the Airports Authority of India (AAI) and other airport developers have targeted a capital outlay of approximately Rs 980 billion in the next five years for the expansion and modification of new and existing terminals as well as the strengthening of runways, among other activities.

The Centre has also approved the Emergency Credit Line Guarantee Scheme (ECLGS) to the aviation sector, according to the Ministry.

Based on the industry demand, the scope of ECLGS has been enhanced to provide credit support to these companies upto 100 per cent of their total credit outstanding (both fund based and non-fund-based outstanding) as on reference dates, subject to a cap of Rs 15 billion per borrower, whichever is lower, it said in its reply.

Also Read
Tata Power and AutoGrid collaborate to expand Mumbai's energy system
Power Min informs 39 hydro projects being implemented, 9 stalled

India's aviation industry suffered a loss of over Rs 240 billion in the last two financial years during 2020-22. As per the Union Ministry of Civil Aviation, the industry in FY 2020-21 suffered a loss of Rs 124.79 billion and in FY 2021-22 it was Rs 116.58 billion. In a reply at the Lok Sabha, the Ministry said the Centre has taken various initiatives to support the aviation industry. The reduction in VAT on Aviation Turbine Fuel (ATF) was taken up with state governments and union territories levying high VAT on ATF. As a result, VAT on ATF has been reduced by 17 states and UTs. The reply said that the GST rate has been reduced from 18 per cent to 5 per cent for domestic Maintenance, Repair and Overhaul (MRO) services. The Ministry further informed that the Airports Authority of India (AAI) and other airport developers have targeted a capital outlay of approximately Rs 980 billion in the next five years for the expansion and modification of new and existing terminals as well as the strengthening of runways, among other activities. The Centre has also approved the Emergency Credit Line Guarantee Scheme (ECLGS) to the aviation sector, according to the Ministry. Based on the industry demand, the scope of ECLGS has been enhanced to provide credit support to these companies upto 100 per cent of their total credit outstanding (both fund based and non-fund-based outstanding) as on reference dates, subject to a cap of Rs 15 billion per borrower, whichever is lower, it said in its reply. Also Read Tata Power and AutoGrid collaborate to expand Mumbai's energy system Power Min informs 39 hydro projects being implemented, 9 stalled

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code