The Haj subsidy is basically an Air India subsidy. Many religious scholars as wella s muslims leaders have been calling for revoking this haj subsidy and use thsi money for developmental and education support instead.
For example even the Shahi Imam, Ahmed Bukhari, as prominently reported by Inquilab , Qaumi Awaaz and Akhbar-e-Mashriq (August 27) has argued that the concession given in the name of the haj subsidy is actually being given to the monopoly carrier, Air India, which covers its annual deficit with the help of such a subsidy. According to Bukhari, Air Indias regular Delhi-Jeddah airfare of Rs. 22,000 is raised to Rs. 37,000 during haj. So the subsidy is limited to the airline and does not flow to the traveller.
So as long as Air India Babus have thier way they will continue to have their "Haj subisdy" to cover their mismanagemnet and losses.