Air India crash: Parliamentary panel flagged ‘discrepancy’ in aviation funding 3 months before Ahmedabad tragedy

Air India Crash: A parliamentary standing committee report flagged a ‘distinct imbalance’ and ‘discrepancy’ in the allocation of funds across key aviation bodies in March, about three months before the tragic Air India plane crash in Ahmedabad.

The panel observed that the ‘discrepancy’ raised important questions about prioritising regulatory compliance over security infrastructure and accident investigation capabilities. The panel recommended the adoption of performance-based budgeting for aviation regulatory bodies, linking allocations to specific performance indicators.

“The Committee observes that the Capital Outlay for BE 2025 distinct imbalance in the allocation of funds across key aviation bodies. The Directorate General of Civil Aviation (DGCA), entrusted with regulatory oversight, commands the largest share of ₹30 Crore, nearly half of the total budget,” reads the report by the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture.

The London-bound Air India flight AI-171 carrying 242 passengers and crew members crashed in Ahmedabad on 12 June. All but one on board the plane died along with nearly 29 on the ground when the aircraft smashed into a medical complex.

“While its role in ensuring compliance with aviation standards is indisputable, the justification for such a significant allocation must be carefully examined to ensure efficiency and accountability,” the report reads.

According to the report, while the DGCA was allocated ₹30 crore for the financial year 2025-26, the Aircraft Accident Investigation Bureau (AAIB) got ₹20 crore, and the Bureau of Civil Aviation Security (BCAS) received only ₹15 crore. The AAIB is probing the Ahmedabad Air India plane crash.

“In contrast, the BCAS and AAIB receive ₹15 Crore and ₹20 Crore, respectively. While regulatory compliance remains essential, the rapid expansion of aviation infrastructure, with airports increasing from 74 in 2014 to 147 in 2022 and a target of 220 by 2024-25, necessitates proportional growth of security capabilities and accident investigation resources. In view of the growing complexity of aviation security threats and the critical nature of accident investigations, the Committee finds these allocations relatively modest,” the report reads.

The 32-member standing committee, headed by Janata Dal United MP Sanjay Jha, presented its report in the Rajya Sabha on 25 March 2025. Apart from Jha (Chairman), the other members of the panel included M Mohamed Abdulla, M Nadimul Haque, Jaggesh, Sudha Murty, Imran Pratapgarhi from the Rajya Sabha and Mina Altaf Ahmad, Rajiv Pratap Rudy, Manoj Tiwari, and KC Venugopal from the Lok Sabha, to name a few.

‘Questions about prioritising regulatory compliance’

The report said the ‘funding discrepancy’ raises important questions about prioritising regulatory compliance over security infrastructure and accident investigation capabilities.

The panel recommended that aviation regulatory bodies adopt performance-based budgeting, linking allocations to specific performance indicators and outcomes.

“This approach would enhance accountability and ensure that funds are utilised efficiently to address the most pressing challenges within each domain. Regular performance audits should be conducted to assess the effectiveness of allocated resources and inform future budgeting decisions," it said.

The panel, as reported by LiveMint earlier, also raised serious concerns over the limited manpower in the DGCA, BCAS, and the Airports Authority of India (AAI).

More than 53 per cent of positions are vacant in the DGCA, 35 per cent in the BCAS, and 17 per cent in the AAI, which manages airport infrastructure, according to the 375th report on Demands for Grants (2025–26) of the Ministry of Civil Aviation.