Nod for release of Rs. 10.75 cr. to State aviation corporation

July 27, 2016 12:00 am | Updated 06:04 am IST - HYDERABAD:

The State government has given administrative sanction for release of Rs. 10.75 crore to the A.P. Aviation Corporation Limited for meeting plan and non-plan expenditure for the second quarter of the current financial year.

The order comes in the light of a request made by the corporation’s Managing Director. A major chunk of Rs. 10.5 crore, according to sources, would be spent towards air services, i.e., costs involved in the operation and maintenance of the aircraft/helicopter used by the Chief Minister during the second quarter of the current fiscal. The remaining Rs. 25 lakh would be spent towards salaries and other non-plan expenditure incurred by the corporation.

The release forms part of the Rs. 54.96 crore allocated to the Infrastructure and Investment Department for the current financial year. Of the total budgetary allocation, the department estimated its plan and non-plan expenditure on air services at Rs. 30 crore, targeting release of Rs. 10.5 crore each for the first and second quarters, and another Rs. 4.5 crore each for the third and final quarters of the fiscal.

Criticism

The budgetary allocation has been made in spite of the claims of the government on deficit budget and shortfall in revenue receipts. The Chief Minister has been attracting criticism from different sections on what is termed as extravagant expenditure being incurred by the Exchequer towards chartering of aircraft and helicopters for his frequent visits to districts as well as tours abroad to attract investments.

In addition to his visits to New Delhi, Mr. Naidu and his entourage opted for chartered flights for his recent visits to China and Kazakhstan. The government is said to have incurred around Rs. 20 crore towards the flight costs by the end of the previous fiscal.

As part of the budgetary allocation, the department has also sanctioned Rs. 6.29 crore towards assistance to the Bhogapuram International Airport Corporation Limited and the funds would be spent in four instalments of Rs. 1.57 crore each during the fiscal year.

Of it, Rs. 10.5 crore is to meet operation and maintenance costs of aircraft/helicopter of the CM

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