Rs 21,030 Mn Allocated To Ministry Of Civil Aviation

05 Feb 2026 CW Team

The union budget for Financial Year 2026–27 proposed an allocation of Rs 21,030 mn to the Ministry of Civil Aviation, representing the conversion of Rs 2,103 crore. The proposal allocates Rs 20,580 mn for revenue expenditure and Rs 450 mn for capital expenditure. The allocation reflects the ministry's identified spending priorities within the civil aviation sector for the coming year.

A provision of Rs 8,900 mn has been identified for liabilities and commitments associated with Air India following its sale to the Tata Group. The allocation for those obligations forms a significant portion of the ministry's planned revenue expenditure and is intended to cover outstanding commitments arising from the airline's prior public sector status. The budgetary treatment signals the continued fiscal management of legacy liabilities.

A sum of Rs 7,583.9 mn is proposed for Air India Asset Holding Limited (AIAHL), the special purpose vehicle set up to assume and service Air India debt incurred during its time as a public sector company, and will be used to service those liabilities. AIAHL is designated to manage residual debt and related obligations transferred from the airline. The allocation to AIAHL forms part of a broader approach to disentangle legacy financial burdens from operational aviation entities.

The budget proposal therefore channels resources to address legacy obligations while maintaining funding for ongoing civil aviation functions. The balance between revenue provisioning for liabilities and modest capital spending underscores a prioritisation of debt management over fresh infrastructure investment in the current cycle. Observers note that the distribution of funds may affect near term operational planning within the sector and shape subsequent policy decisions on airline restructuring and public asset management.

Infrastructure Transport

05 Feb 2026

Bharatmala Pariyojana Sees Over 21,700 Km Roads Built

India’s flagship highway development programme, Bharatmala Pariyojana, has made substantial progress, with over 21,700 km of roads constructed across the country as of December 2025, the Ministry of Road Transport and Highways (MoRTH) informed the Lok Sabha recently.Approved in 2017, the Bharatmala Pariyojana has an overall target of 34,800 km of highways aimed at strengthening connectivity and reducing logistics costs nationwide. Under Phase I, projects covering 26,425 km have been awarded, of which 21,783 km have already been completed, reflecting significant physical progress.The Ministry..

Nashik–Akkalkot Greenfield Highway Land Acquisition Nears Completion

Land acquisition for the 374 km Nashik–Akkalkot greenfield highway has reached an advanced stage, with around 90 per cent of land notifications already issued, the government informed Parliament recently.In a written reply in the Lok Sabha, Union Minister for Road Transport and Highways Nitin Gadkari said the project was approved on 31 December 2025 under the PM Gati Shakti National Master Plan. The six-lane, access-controlled corridor will pass through Nashik, Ahilyanagar, Beed, Dharashiv and Solapur districts in Maharashtra.The Cabinet Committee on Economic Affairs has approved the project..

Raksha Mantri Grants Miniratna Category-I To Yantra India Limited

Raksha Mantri Rajnath Singh has approved the grant of Miniratna (Category-I) status to Yantra India Limited (YIL), marking a key step in the company’s transition from a government organisation to a profit-making corporate entity over about four years. The ministry said the decision followed an assessment of improvements in turnover, indigenisation and other performance parameters required for the status. The grant is presented as recognition of management initiatives that drove financial and operational transformation. Since its inception YIL has recorded substantial growth in sales, rising..