Maharashtra becomes first state to sign MoU for Regional Connectivity Scheme
Maharashtra has become the first state to
sign an MoU with the ministry of civil aviation and the Airports Authority of
India for Regional Connectivity Scheme to develop 10 districts. This would lead to opening up of new destinations for both
development and investments.
Details:
- The first phase will include Shirdi, Nanded, Amravati, Gondia, Nashik, Jalgaon, Solapur, Kolhapur, Ratnagiri and Sindhudurg.
- The MoU aims to facilitate regional air connectivity by making air travel affordable and move aviation sector in Maharashtra to next level.
- Maharashtra state government has also sought viability gap funding from the Centre for comprehensive airport connectivity development projects connecting one district with another through flights on dedicated routes.
- As per the agreement, the state will reduce the local tax on aviation fuel from existing 10% to 1% for 10 years, apart from providing essential land free of cost.
- The state will also provide electricity, water and necessary facilities at concessional rates.
- Under the scheme, the state will contribute 20% cost of viability gap funding, and the rest will be borne by the Centre.
Background:
The fully subsidised regional connectivity scheme (RCS) seeks to
cap ticket prices so as to make flying more affordable and accessible to the
common man and is part of the ambitious National Civil Aviation Policy 2016.
- Under the RCS, the Centre will subsidise 80% of the cost under a viability gap fund (VGF) scheme, while the states will meet the rest of the cost. In the case of the northeastern states, the central subsidy will be 90%.
- The RCS stipulates that air tickets for under a one-hour flight will be capped at Rs 2,500, and the VGF will take care of the rest of the operational cost.
