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, aiming to sustain global connectivity, support the Odia diaspora, and strengthen the State’s aviation-led economic growth.
The decision pertains to international operations currently undertaken by IndiGo on the Bhubaneswar–Dubai and Bhubaneswar–Singapore routes, which were launched earlier with State VGF support to bridge initial commercial viability gaps.
Under the Cabinet-approved proposal, the Bhubaneswar–Dubai route will receive VGF support for a further six months during the Winter Schedule 2025, from October 27, 2025 to March 29, 2026, under the State’s New Destination Policy.
The extension has been recommended in view of a sharp decline in passenger load factor following the withdrawal of earlier support, raising concerns over the possible discontinuation of the route. The Cabinet noted that Dubai remains a crucial destination for the Odia migrant workforce and serves as a key global aviation hub.
The Bhubaneswar–Singapore route will also 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.
Singapore has been identified as a critical partner for Odisha in trade, investment, and institutional collaboration, making sustained direct air connectivity a strategic necessity for the State.
As part of rationalisation measures aimed at optimising public resources, the Cabinet approved the discontinuation of VGF support for two international routes:
- Bhubaneswar–Bangkok with effect from October 27, 2025
- Bhubaneswar–Abu Dhabi with effect from December 11, 2025
The move is intended to stabilise priority routes while reallocating State support more efficiently.
The Cabinet emphasised that sustained international flight operations are critical not only for passenger connectivity but also for retaining airport slots, stabilising routes, and advancing Odisha’s long-term vision of becoming a regional aviation hub. These efforts align with the State’s B-MAAN (Building and Maintaining Aviation Assets and Networks) scheme.
The total VGF support proposed for the Dubai and Singapore routes for the six-month period stands at approximately ₹26.87 crore. The expenditure will be met from the approved allocation under the B-MAAN scheme.
The Cabinet further decided that any future continuation, modification, or addition of international routes will be reviewed periodically and decided at the level of the Chief Minister, based on route performance and passenger demand.
