Govt mulling up to Rs 120 billion rescue for aviation sector as coronavirus takes toll on airlines: Report

India is planning a rescue package worth as much as $1.6 billion for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt, two government sources told Reuters.

The Finance Ministry is considering a proposal that includes temporary suspension of most taxes levied on the sector, including a deferment of aviation fuel tax, said the sources, who have direct knowledge of the matter.

The rescue package, proposed by India's civil aviation ministry, is likely to be worth up to Rs 100-120 billion ($1.3-$1.6 billion), the two sources said.