New Delhi: With focus on connectivity of North-eastern region, UDAN 4.0 scheme under the Ministry of Civil Aviation (MoCA) has invited bids for six underserved and 24 unserved airports/airstrips in the North-East states of India. The ministry has also recognised one Water Aerodrome location that is up for bidding in the region.
Govt providing VGF of 25% to airlines under UDAN 4.0
Under UDAN 4.0 scheme, MoCA is also providing additional Viability Gap Funding (VGF) of around 25% to the airlines. “The effort will not only boost tourism but will also transform the economic situation of the region,” an official release from the ministry said.
Other benefits being provided by the government include, excise duty at the rate of 2 percent on Aviation Turbine Fuel (ATF) drawn by Selected Airline Operators at RCS Airport(s) for RCS Flights for three years from the date of notification and reduction of VAT to 1 percent or less on ATF at RCS Concession Airports located within the state for a period of 10 years from the date of notification. The government will bear 90 percent of VGF and the remaining 10 percent will be borne by North East state governments.
Provision of minimum land free of cost
The government will provide minimum land, if required, free of cost and free from all encumbrances for the development of the RCS Concession Airports and also provide multi-modal hinterland connectivity (road, rail, metro, waterways, etc) as required. Provision of security and fire services will also be free of cost at RCS Concession Airports.
The government aims to operationalise 1,000 routes and more than 100 airports in the next five years. This would be achieved by focusing on operationalising routes in priority areas. State-run Airports Authority of India (AAI) would focus on developing the no-frills airport in the future and routes connecting such airports would be prioritised for the award of VGF. The market would be incentivised to develop short-haul routes only, providing connectivity to nearby airports.
Airports available for bidding under UDAN 4.0
List of Unserved Airports / Airstrips up for bidding:
Arunachal Pradesh – Alinya, Along, Daparizo, Mechuka, Tuting, Vijaynagar, Walong, Yinghiong, Ziro
Assam –Chabua, Darrang, Dinjan, Ledo, Misa Mari, Nazira, Sadiya, Sorbhog, Sukerating (Dum Duma)
Meghalaya –Dwara, Shella, Tura
Tripura -Kailashahar, Kamalpur, Khowai
List of Underserved Airports / Airstrips up for bidding:
Arunachal Pradesh –Passighat&Tezu
Assam – Jorhat, Rupsi, Tezpur
List of Water Aerodrome up for bidding:
Assam -Umrangso Reservoir