Bhubaneswar: In a bid to boost economic growth and tourism, the Odisha Cabinet on Wednesday gave its nod to a new policy designed to enhance air connectivity significantly across the state.
The state Cabinet meeting chaired by Chief Minister Mohan Charan Majhi, approved the new air connectivity policy, Chief Secretary Manoj Ahuja told reporters while briefing about the decisions taken at the meeting.
The Cabinet in its meeting put its stamp of approval on six proposals pertaining to Agriculture and Farmers Empowerment Department, Commerce and Transport, Finance, Food Supply and Consumer Welfare, General Administration and Public Grievances, and Women and Child Development Departments.
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: This 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 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.