Bhubaneswar: The Odisha Cabinet on Saturday approved a proposal to continue and rationalise State Viability Gap Funding (VGF) support for select international air routes from Bhubaneswar, with an aim to sustain global connectivity, support the Odia diaspora and boost aviation-led economic growth.
The proposal placed before the Cabinet by the Commerce and Transport Department concerns international flight operations currently run by IndiGo, connecting Bhubaneswar with Dubai and Singapore. These routes were launched earlier with State VGF support to bridge initial commercial viability gaps.
As per the decision, VGF support for the Bhubaneswar–Dubai route is recommended for a further six months during the Winter Schedule 2025 (October 27, 2025 to March 29, 2026). The move comes in view of a decline in passenger load factor following the withdrawal of earlier support, raising concerns over the possible discontinuation of the route.
Officials said the support is proposed under the State’s New Destination Policy to ensure continuity of direct international connectivity.
The Bhubaneswar–Singapore route is also proposed to
receive VGF support for a six-month period, with updated cost indexation. Despite its strategic importance, the route continues to face commercial challenges due to low passenger load factors and high operating costs, necessitating continued State intervention.
As part of a rationalisation exercise, the government has proposed discontinuation of VGF support for two international routes – Bhubaneswar–Bangkok, effective October 27, 2025 and Bhubaneswar–Abu Dhabi, effective December 11, 2025.
The step is aimed at optimising public resources while stabilising priority international routes.
Officials noted that Dubai is a major hub for the Odia migrant workforce, and direct connectivity is crucial to avoid reliance on indirect travel through other metros. Singapore, meanwhile, remains a key partner for Odisha in trade, investment, and institutional collaboration.
Sustaining international operations is also essential for retaining airport slots, stabilising routes, and advancing Odisha’s ambition to emerge as a regional aviation hub under the B-MAAN (Building and Maintaining Aviation Assets and Networks) scheme.
The total VGF support proposed for the two routes over the six-month period is estimated at approximately Rs 26.87 crore. The expenditure will be met from the approved allocation under the B-MAAN scheme.
Any further continuation, modification, or expansion of international routes will be decided at the level of the Chief Minister, based on periodic performance reviews of route viability and passenger demand.