Under Section 25(1), the Authority may set apart reserve fund(s) for several purposes, including meeting expenditure arising from loss or damage due to fire, cyclone, or air-crash, and ALSO for meeting any liability arising out of:

Section 25(1) lists several reserve-creation purposes: expanding/creating facilities, providing against temporary revenue decreases or expenditure increases, replacement costs, meeting losses from fire/cyclone/air-crash/other accidents, and - significantly - meeting any liability arising out of ANY ACT OR OMISSION by the Authority in the discharge of ITS OWN functions under the Act. This last purpose is a self-insurance mechanism against the Authority's own operational/functional liability exposure, not a fund for officers' personal tax liabilities, Centre-State disputes, private airline losses, or AERA's liabilities - none of which fall within the Authority's own reserve-fund purposes under this sub-section.