There is some good news for the aviation sector. Presenting the 2021 budget, the Finance Minister Nirmala Sitharaman stated ₹ 1.7 lakh crore has been provided for transport infrastructure in 2020-21. The airports would be developed by 2025 to support the UDAN scheme.
She also said 150 trains will run under the public private partnership (PPP) mode, also four stations will be redeveloped with the help of the private sector. Many airlines have evinced interest to start operations to smaller towns and the development of 100 airports augurs well for the sector.
The announcement boosts the current infrastructure constraints faced by airlines, and to improve connectivity with underserved/unserved airports to boost tourism.
However, the industry has also demanded the Centre to keep GST rates on travel by both private and commercial flights at 5 per cent to reduce cost of travelling for those who don’t get GST refund benefits.
If there was any sector that was badly hit by the coronavirus pandemic, it was the aviation industry. Most airlines faced losses and hundreds of employees lost jobs. Airlines have been urging the government to reduce airport charges to attract customers.
Though the coronavirus is tapering out, the emergence of new strains is a worry for the aviation sector. It may be mentioned that special international passenger flights to around 24 nations were allowed under Vande Bharat Mission after July but scheduled international flights are still suspended.
