Lok Sabha Question No. 201 (UNSTARRED), answered on 2023-02-02
Subject: Loss to Aviation Industry
Ministry: CIVIL AVIATION
Asked by: Anumula Revanth Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION

## Lok Sabha

UNSTARRED QUESTION NO. : 201

( TO BE ANSWERED ON THE  2nd February 2023 )

## LOSS TO AVIATION INDUSTRY

201.    SHRI ANUMULA REVANTH REDDY

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the aviation industry incurred a loss of Rs. 11658 crore during the financial year 2021-22 and if so, the details thereof during the last five years, year-wise;
- (b)  whether  the  Government  Conducted  regular  analysis  of  the financial status of the aviation industry and if so, the details of the last report;
- (c)  whether  the  Government  has  fixed  any  timeline  to  conduct  a similar  analysis  for  the  improvement  of  the  financial  status  of  the aviation industry in the country and if so, the details thereof; and
- (d) the details of the initiatives taken by the Government to reduce the financial loss of the aviation industry?

## ANSWER

Minister of State in the Ministry of (GEN. (DR) V. K. SINGH (RETD))

CIVIL  AVIATION

(a)Based on the inputs received from the major Indian airlines and losses information available with the Ministry, the details of incurred by the industry during the last three years are as follows:;

YEAR              LOSS (Rs. in crores);

FY 2019-20       4770

FY 2020-21       12479

FY 2021-22       11658

- (b) & (c) No, Sir. The airlines are run by Private Operators and the Government has deregulated the airline fares. As such, the Government does not analyse the financial status of airlines.
- (d) Government has taken various initiatives to support the aviation industry. ;
- I) The reduction in Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) was taken up with the state Government / Union Territories levying high VAT on ATF. As a result, VAT on ATF has been reduced by 17 States/ UTs whose details are as below:

;

States which have reduced VAT on ATF in the range of 1-4%:

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(i) Andaman & Nicobar Islands; (ii) Uttarakhand; (iii) Jammu & Kashmir; (iv) Ladakh; (v) Himachal Pradesh; (vi) Tripura; (vii) Madhya Pradesh; (viii) Haryana; (ix) Uttar Pradesh; (x) Dadra and Nagar Haveli & Daman and Diu; (xi) Arunachal Pradesh; (xii) Manipur; (xiii) Jharkhand; (xiv) Mizoram ; ; Other States which have reduced VAT on ATF: ; (xv) Gujarat - From 30% to 5% (xvi) Goa - From 18% to 8% (xvii) Karnataka - From 28% to 18% ; II)  Goods  and  Services  Tax  on  (GST)  rate  has  been  reduced  from 18% to 5 % for domestic Maintenance, Repair and Overhaul (MRO)
```

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services.
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III)  Airports  Authority  of  India  (AAI)  and  other  Airport  Developers have  targeted  capital  outlay  of  approximately  Rs.  98,000  crore  in airport sector in the next five years for expansion and modification of existing terminals, new terminals and strengthening of runways, among other activities. IV)  Government  has  approved  Emergency  Credit  Line  Guarantee Scheme (ECLGS) to aviation sector. Based on the industry demand, the scope of ECLGS has been enhanced to provide credit support to these companies upto 100% of their total credit outstanding (both fund based and non-fund based outstanding) as on reference dates, subject to a cap of Rs. 1500 crore per borrower, whichever is lower.

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