Odisha Govt to provide financial incentives to airlines for starting new flights

New Delhi: The Odisha Cabinet on Wednesday approved the Air Connectivity Policy under which substantial financial incentives would be offered to airlines to encourage them to launch new domestic and international flights from different airports in the state, officials said.

Besides the Biju Patnaik International Airport in Bhubaneswar and Veer Surendra Sai Airport in Jharsuguda, the state has smaller airports in Jeypore, Rourkela and Utkela, they said.

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Under the new policy, the government would provide viability gap funding to airlines for starting new services from these airports, they said.

It would provide Rs 5 lakh per round trip for domestic routes and Rs 10 lakh for international routes, with a potential increase for routes exceeding 750 km, an official statement said.

This support would mitigate financial risk and make new routes more attractive, it said.

The policy is aligned with the National Civil Aviation Policy 2016 and the UDAN scheme, the statement said, adding that it also prioritises connecting underserved regions, ensuring fairer access to air travel across Odisha.

"However, the airlines must meet strict eligibility criteria, including minimum aircraft capacity (50 seats for domestic, 180 for international), DGCA approvals, and a commitment to sustainable and non-stop operations," the government said.

"A chief secretary-led high-power committee will be formed to oversee implementation, monitor route performance, and adapt the policy needed. This move will ensure accountability and effective program management," it said.

Through this policy, the state is expected to generate significant economic benefits, including stimulating tourism, fostering job growth in related sectors, enhancing trade and commerce, and driving regional development, especially in western Odisha, the statement said.

The cabinet also approved minor amendments in the guidelines for the financial assistance scheme Subhadra Yojana that included delinking its database from the Aadhaar, officials said.

Under the scheme, over 1 crore women in the age of 21-60 would receive Rs 50,000 over five years between 2024-25 and 2028-29, they said.

Each beneficiary will receive Rs 10,000 per year in two installments of Rs 5,000 each -- one on Rakhi Purnima, and the other on International Women's Day on March 8.

Chief Secretary Manoj Ahuja said that over 1 crore people have registered so far and more than 60 lakh applications have been approved.

About 2.70 lakh applications have been rejected as they were found ineligible during scrutiny, he said.

The Cabinet also approved the proposal to implement Samruddhi Krushak Yojana, under which farmers who have registered to sell paddy through the existing government mechanism will be paid Rs 3,100 per quintal, including the input assistance of Rs 800 per quintal and the prevailing minimum support price, the chief secretary said.

The cabinet approved the paddy procurement policy for Kharif Marketing Season (KMS) 2024-25, which commenced on October 18 and would conclude on September 30, 2025.

The State Government has set a target to procure 80 lakh metric tonne of paddy during the season, officials said, noting that in terms of rice, this would be around 54 lakh metric tonne.

There is no bar for procurement of higher quantum if more paddy comes to 'mandis' from registered farmers, they said.

The cabinet also approved an amendment to the Odisha GST Act through an ordinance as the assembly was not in session on the recommendation of the GST Council.

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