The funds would be for India Aviation Safety Technical Assistance Phase II and the government would pitch in with USD 446,866.
The USTDA would partially fund the "assistance to the tune of USD 808,327 and contractor The Wicks Group (TWG) would share the cost of assistance at USD 75,000.
"Phase II of the current project is aimed at sustaining efforts undertaken during 2014 for restoration of IASA Category 1 status and bringing in more systemic improvements in the area of operation, airworthiness and licensing. It will include components on general aviation and business aviation," an official release said today.
The Directorate General of Civil Aviation (DGCA) and the USTDA today inked a grant agreement here for India Aviation Safety Technical Assistance Phase II.
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In April, the US Federal Aviation Administration (FAA) restored India's Category 1 safety rating.
The International Civil Aviation Organisation (ICAO) had raised certain safety concerns about Indian aviation in its 2012 audit.
Later in March 2014, the USTDA in coordination with FAA approached DGCA and offered assistance under a grant agreement to address issues in the wake of IASA audit findings.
Then, TWG assisted DGCA in addressing the issues and prepared for a reassessment by FAA in December 2014.
Based on that reassessment and a follow-up visit in March 2015, India's Category 1 status was restored in April 2015.