Bhubaneswar: To enhance air connectivity across Odisha, the state government today announced a new aviation policy, offering substantial financial incentives to airlines. The policy aims to encourage the launch of new domestic and international air routes connecting Biju Patnaik International Airport (Bhubaneswar), Veer Surendra Sai Airport (Jharsuguda), and smaller airports in Jeypore, Rourkela, and Utkela.
The policy was approved during a State Cabinet meeting chaired by Chief Minister Mohan Charan Majhi on Wednesday and is expected to transform Odisha’s air travel landscape.
Key Features of the Policy:
- Substantial Financial Incentives: Airlines launching new routes will receive Viability Gap Funding (VGF) to reduce operational risks. The funding includes ₹5,00,000 per round trip for domestic routes and ₹10,00,000 for international routes. For routes exceeding 750 km, the incentives could be increased to attract more airlines.
- Expanding Access to Underserved Areas: The policy emphasizes enhancing air connectivity to underserved and remote regions of Odisha, ensuring more equitable access to air travel across the state.
- Strict Eligibility Criteria: Airlines must meet specific requirements, such as using aircraft with a minimum of 50 seats for domestic routes and 180 seats for international routes. Airlines must also secure approvals from the Directorate General of Civil Aviation (DGCA) and commit to operating sustainable, non-stop flights.
- Comprehensive Monitoring: The policy’s implementation will be overseen by a High-Power Committee (HPC) led by the Chief Secretary. This committee will monitor the performance of newly introduced routes and adjust the policy as needed to ensure effective results.
- Economic Growth and Development: Enhanced air connectivity is expected to stimulate tourism, create job opportunities, boost trade and commerce, and promote regional development—particularly in Western Odisha. Studies show that improved air connectivity can have substantial economic benefits, serving as a multiplier for regional growth.
- Alignment with National Policies: The state’s new policy is aligned with the National Civil Aviation Policy of 2016 and the UDAN (Ude Desh Ka Aam Naagrik) scheme, further supporting Odisha’s efforts to improve aviation infrastructure and connectivity.
- Focus on Sustainability: The policy also focuses on ensuring the long-term sustainability of new routes by prioritizing those with strong passenger demand potential.
Broader Impact
The new air connectivity policy demonstrates the Odisha government’s strong commitment to improving aviation infrastructure, enhancing economic growth, and providing citizens with improved access to domestic and international travel. It is expected to generate broad economic benefits, from increased tourism to job creation, while also enhancing the quality of life for people across the state.
The state government’s efforts reflect its vision of driving regional development through strategic infrastructure investments, aligning with national goals and enhancing Odisha’s prominence in the aviation sector.