3 Airports Selected for development under UDAN first phase


From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Apr 20: Three airports of Mysuru, Bidar and Vidyanagar (Ballari) have been selected in the first phase of bidding for providing regional connectivity scheme (RCS) under the Udan-Ude-Desh-Ka Aam Nagarik (UDAN) (let common man fly).

While air connectivity to Vidyanagar airport will be commence from next month, operators would commence services to Mysuru and Bidar from September.

All inclusive airfare price per seat under the RCS Rs 2500 and airfare cap would be indexed to inflation and revised quarterly.

“We are happy to announce the participation of Government of Karnataka in the Regional Connectivity Scheme (RCS) under National Civil Aviation Policy 2016, Government of India. Today we have signed of a Memorandum of Understanding on RCS with MoCA, Government of India and Airports Authority of India,’’ an official press release from the Union Civil Aviation Ministry said.

The Union Civil Aviation Ministry has announced National Civil Aviation Policy 2016 (NCAP-2016). 

The Regional Connectivity Scheme (RCS) is part of the NCAP-2016. 

Regional Connectivity Scheme (RCS) 

‘Ude Desh Ka Aam Nagrik’ (Let the Common Man Fly) or UDAN is proposed to fulfil a key objective of promoting regional development, make flying affordable for masses, promote tourism, increase employment & encourage balanced regional growth.

Concessions offered to Airlines under RCS

As part of the commitments from the State Government, the concessions offered to airlines operating in the RCS routes are:

*    Reduced Sales Tax (ST) to 1% or less on ATF at RCS Airports and for RCS flights from other airports located within the State for a period of 10 years;

*   Provide minimum land, if required, and wherever available free of cost and free from all encumbrances for development and expansion of RCS Airports and provide rail and metro connectivity to the RCS airports in coordination with Government of India.

*   Provide security and fire services free of cost at Government RCS Airports and for private RCS Airports, it will be examined on case to case basis.

*    Provide electricity, water and other utility services at concessional rates only at RCS Government Airports; and

*    Provide 20% share of VGF determined pursuant to RCS.

The State Government will examine any additional incentives over and above the incentives being provided under the  Scheme by Central Government and State Government, if any policy of the State Government allows to do so.

19 Airports in State chosen for development

Government of India has identified 19 airports for development in the State.

The 19 airports chosen for development in the State are: Chikkamagaluru, Kushalnagar, Karwar, Harihar, Ammasandra, Koppal, Bengaluru, Ballari, Bidar, Ginigera (Hospet), Hassan, Jakkur, Kolar, Mysore (Mandakalli), Raichur, Shahabad, Vidyanagar, Yadgir and Yelahanka as per RCS.

Airport Authority of India (AAI) as an implementing agency for RCS has invited bids from Airline Operators. Out of the proposals, from airline operators, initial bids have come for four airports from Karnataka and which are detailed in the press note.

The RCS is a demand driven scheme where Airline operators bid for routes/networks and State can suggest/ propose any airport to be included in the unserved and underserved list as and when required.

Development of Regional Air Connectivity not only connects different cities but also contributes to States GDP and creates employment. The contribution of air transport and related civil aviation industries to local, regional or national economies has multiplier or ripple effect and has direct, indirect, induced and catalytic benefits to the economy.

It is endeavour of Government of Karnataka to attract investments across the State and hope RCS will propel the vision of Industrial Policy 2014-19 in building a prosperous Karnataka through inclusive, sustainable and balanced industrial development thereby creating large employment opportunities.

Expansion of Mangaluru Airport Runway

The Secretary of Union Civil Aviation Ministry has held discussions with the State Government top officials on issues on expansion of runway of Mangaluru Airport and other minor issues connected with Belgaum Airport, Hubballi Airport and Mysore Airports.

The State Government is planning to develop airstrips and no frills airports across Karnataka.

The Government of India is coming up with a model document along with a policy document shortly.

"Work on development of Chikkamagaluru, Karwar and Kodagu airports is expected to be taken up in the first phase soon,’’ the press release added.

  

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Title: 3 Airports Selected for development under UDAN first phase



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