Government seeks infusion of Rs 62 crore in Air India for spending this year

New Delhi:

The government on Friday sought parliamentary approval to inject more than Rs 62,000 crore into the company that owns Air India’s residual assets and liabilities after its privatization, as part of additional spending of over Rs 3.73 lakh crore forecast for the current fiscal year.

The additional expenditure would include Rs 58,430 crore in the form of an additional subsidy for fertilizers, Rs 53,123 crore for the payment of pending export incentives and Rs 22,039 crore to the Ministry of Rural Development for transfer to the National Guarantee Fund. rural employment.

Minister of State for Finance Pankaj Chaudhary filed second batch of additional Lok Sabha grant applications forecasting a net outflow of over Rs 2.99 lakh crore and additional spending of Rs 74,517 crore would be offset by savings made by various departments.

According to the document, 62,057 crore rupees would be turned over to the Ministry of Civil Aviation for the injection of capital into Air India Assets Holding Company (AIAHL) for the repayment of past government guaranteed loans and arrears / liabilities of Air India.

In addition, an additional Rs 2,628 crore would be given for loans and advances to Air India to recover the India Emergency Fund advance.

The supplementary fertilizer subsidy includes Rs 43,430 crore as payment for the domestic and imported phosphate and potassium (P&K) subsidy and Rs 15,000 crore for the urea subsidy program.

In addition, the Ministry of Food and Public Distribution would receive an additional Rs 49,805 crore to cover expenses related to various food storage and warehousing programs.

About Rs 2,400 crore would be remitted to the Ministry of Commerce to cover expenses related to subsidies under the “Interest Equalization Scheme” and investments under the Export Credit Guarantee Company scheme. (ECGC), among others.

Another over Rs 5,000 crore and over Rs 4,000 crore has been earmarked for additional spending by the Defense and Interior Ministries respectively.

The 2021-22 budget forecasted total government spending at Rs 34.83 lakh crore. But that’s expected to exceed given the two batches of additional grant requests the government has submitted so far.

In August, the government received the green light from parliament for a net additional expenditure of Rs 23,675 crore in the first batch of additional grant applications.

(This story was not edited by NDTV staff and is auto-generated from a syndicated feed.)

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