Bhubaneswar, Oct 23: The Odisha Cabinet on Wednesday approved a new policy on enhanced air connectivity across the state.
The state Cabinet meeting chaired by Chief Minister Mohan Charan Majhi, approved the new air connectivity policy.
Odisha Chief Secretary Manoj Ahuja informed the reporters on Wednesday while briefing about the decisions taken in the Cabinet meeting.
The new police offers substantial financial incentives to airlines, encouraging the launch of new domestic and international air routes serving Biju Patnaik International Airport (BPIA) in Bhubaneswar, Veer Surendra Sai Airport at Jharsuguda and smaller airports in Jeypore, Rourkela and Utkela.
Key features of the New Air Connectivity Policy
Substantial Financial Incentives: Airlines launching new scheduled services will receive Viability Gap Funding (VGF). This includes Rs 5,00,000 per round trip for domestic routes and Rs 10,00,000 for international routes, with potential increases for routes exceeding 750km. This support mitigates financial risk and makes new routes more attractive.
Expanding Access to Underserved Areas: The policy prioritizes connecting currently underserved regions, ensuring fairer access to air travel across Odisha.
Rigorous Eligibility Requirements: Airlines must meet strict eligibility criteria including minimum aircraft capacity (50 seats for domestic and 180 for international), DGCA approvals, and a commitment to sustainable and non-stop operations.
Comprehensive Monitoring and Evaluation: A High-Power Committee (HPC) led by the Chief Secretary will oversee implementation, monitor route performance and adapt the policy as needed. This ensures accountability and effective programme management.
Broad Economic Benefits: The New Air Connectivity policy is expected to generate significant economic benefits by stimulating tourism, fostering job growth in related sectors, enhancing trade and commerce and driving regional development, especially in Western Odisha.
National Policy Alignment: The Odisha policy aligns with the National Civil Aviation Policy 2016 and the UDAN scheme, strengthening the state’s commitment to improved air connectivity and aviation infrastructure.
Emphasis on Sustainable Growth: The New Air Connectivity policy prioritizes sustainable long-term air connectivity, focusing on routes with strong potential for ongoing passenger demand.
The Cabinet’s approval demonstrates the state government’s strong commitment to improving aviation infrastructure and enhancing the quality of life for its citizens through enhanced connectivity and economic growth.
The Cabinet in its meeting today, accorded approval on six proposals pertaining to at least 5 departments including Agriculture &Farmers Empowerment, Commerce &Transport, Finance, Food Supply & Consumer Welfare, General Administration & Public Grievances, and Women &Child Development.
