Gandhinagar: Gujarat government today signed Memorandum of Understanding(MoU) with union Civil Aviation ministry and the Airports Authority of India(AAI) for regional connectivity scheme in presence of Chief Minister Vijay Rupani and union Civil Aviation minister Ashok Gajpathi Raju.

Regional connectivity scheme aims to provide affordable flying, promote tourism, increase employment and encourage balanced regional growth.

MoU signed today under the regional connectivity scheme aims to revive unserved/under-served airports of Gujarat.

Airports in Bhavnagar, Porbandar, Keshod, Kandla, Deesa, Amreli, Mahesana and Mandvi will be developed under this scheme.

 

 

Operators will assess demand on routes and submit proposals for flight operations, passenger fares will be capped based on flight distance and time.

Under Regional Connectivity Scheme, operators will be suitable to seek viability gap funding(VGF) in caes there’s a gap in operational costs in comparison to Rs 25,00 per hour distance mark targeted by the government in its Civil Aviation policy.

Government of India will provide concessions to the tune of 2% excise on VAT and service tax at 1/10th rate and liberal code sharing for RCS airports. The state government will become key partner and provide free security and fire service, utilities at concessional rates and reduce VAT on Aviation Turbine Fuel(ATF) to 1%. The regional connectivity scheme will be in operation for 10 years with individiaul route contracts for a 3-year plan.

In other decisions, new passenger-friendly facilities will be set up and several existing facilities will be upgraded at Ahmedabad airport. CISF manpower to be allocated at GUJSAIL complex at Ahmedabad airport.

More details: Intra-State air travel to be cheaper in Gujarat, VAT on ATF to be slashed

 

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DeshGujarat