Bhubaneswar: The Odisha government today announced a new policy designed to significantly enhance air connectivity across the state. This initiative offers substantial financial incentives to airlines, encouraging the launch of new domestic and international air routes serving Biju Patnaik International Airport (Bhubaneswar), Veer Surendra Sai Airport ( Jharsuguda ), and smaller airports in Jeypore, Rourkela, and Utkela.
The new policy was announced following its approval in the State Cabinet meeting chaired by Chief Minister Mohan Charan Majhi on Wednesday.
Key Policy Features:
Substantial Financial Incentives: Airlines launching new scheduled services receive Viability Gap Funding (VGF). This includes ₹5,00,000 per round trip for domestic routes and ₹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, 180 for international), DGCA approvals, and a commitment to sustainable, non-stop operations.
Comprehensive Monitoring and Evaluation: A Chief Secretary-led High-Power Committee (HPC) will oversee implementation, monitor route performance, and adapt the policy as needed. This ensures accountability and effective program management.
Broad Economic Benefits: This policy is expected to generate significant economic benefits: stimulating tourism, fostering job growth in related sectors, enhancing trade and commerce, and driving regional development, especially in Western Odisha. Studies Indicate substantial economic multipliers from increased air connectivity.
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 Odisha government’s strong commitment to improving aviation infrastructure and enhancing the quality of life for its citizens through enhanced connectivity and economic growth.
