NEW DELHI, May 2 :Faced with the refusal of the Planning Commission to meet its demand for budgetary support, the ministry of civil aviation (MCA) has been forced to significantly downsize its budgetary support requirements to Rs 885.27 crore from the initial Rs 1,273.46 crore sought for the Ninth Plan (1997-2002).

The budgetary support demand was pruned after the planning body expressed its inability to provide the money due to a severe shortage of funds.

Ministry sources said there would be no major change in the total plan allocation of Rs 18,806.50 crore to be funded mainly through internal resources. In its revised demand forwarded to the Planning Commission last week, the civil aviation authorities have sought funds to the tune of Rs 470 crore for the Airports Authority of India (AAI) Rs 300 crore for upgradation of airports in Jammu and Kashmir and the North-Eastern region and Rs 170 crore to fund new airports at Hassan, Hubli, Belgaum and Gulbarga.

Further, the civil aviation ministry has sought budgetary support of Rs 40 crore for Indira Gandhi Rashtriya Uran Akademi (IGRUA) for the replacement of TB-20 trainer aircraft and simulator. Another Rs 26.29 crore and Rs 23.98 crore have been sought for the expansion of the bureau of civil aviation security (BCAS) and the directorate-general of civil aviation (DGCA), respectively. Also, it is insisting on a budgetary allocation of Rs 325 crore for the Indian Airlines as compensation for grounding of A-320s and fresh equity.

However, the revision is unlikely to find an immediate solution as the planning body has only offered budgetary support of Rs 310 crore -- Rs 260 crore for the AAI, the BCAS, the IGRUA and the DGCA and Rs 50 crore for externally-aided projects. In its original demand, the government had Rs 230.48 crore, including Rs 204.19 on a specialised aviation security force (ASF) for the BCAS. However, the planning body has shot down the proposal for the new force due to financial crunch.

Similarly, the ministry had sought Rs 509 crore (as per the recommendations of Kelkar committee) for the revival of the Indian Airlines but the Planning Commission approved only Rs 325 crore outside the plan. As for funds for new airports, the planning body has informed the civil aviation authorities to make separate arrangements as it did not plan to allocate any funds for the new airports. However, the final allocation is likely to be decided in the next round of talks this month.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.