Big gift for aviation sector likely! Rs 10,000 crore bailout package in the works to fight Coronavirus
In a bid to provide relief to the COVID-19 virus hit the aviation sector, the Modi Government is planning to provide around Rs 10,000 crore bailout package.
In a bid to provide relief to the COVID-19 virus affected aviation sector of India, the Modi Government at the Centre is planning to provide around Rs 10,000 crore special bailout package. According to the sources, as reported by the Zee Business TV, the interim draft of the bailout package for the Indian aviation sector is almost ready and it is in the final stage. Once, the higher officials give their nod to this special bailout package, the Modi Cabinet will give its green signal and the bailout package will be announced immediately after the cabinet meeting.
The source went on to add that the Central Government is in the mood to waive off all taxes for a particular period of time for the aviation sector. The government is also planning to waive-off taxes being levied on the Aviation Turbine Fuel (ATF) to provide some relief to the aviation company through eased prices of the ATF. The Modi Government is taking these measures to boost the morale of the Indian aviation sector which has got hit drastically after the Coronavirus fallout.
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By waiving-off all taxes on the aviation sector, the companies operating in India will get some relief as their business has been hit dearly after the Coronavirus outbreak. As per the government estimates, aviation companies' bookings have gone down to the tune of around 30 per cent. In fact, international operators Vistara and GoAir have postponed their international flights in the wake of Coronavirus fears. Similarly, domestic airlines like IndiGo and SpiceJet had to cut down the number of flights on various domestic routes due to the huge number of seats remaining vacant.
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