New Delhi, Nov 15 (PTI) Airlines' performance andprogress in starting flights on the routes won in the firstround of bidding under the regional connectivity scheme willbe taken into consideration before awarding them more routes,a senior government official has said.
The second round of bidding under the scheme, also knownas UDAN (Ude Desh ka Aam Nagrik) is progressing and as manyas 141 initial proposals from 17 players have been received.
In the first round of bidding, 128 routes that wouldconnect 70 airports were awarded to five airlines and some ofthem are yet to start operations.
Against this backdrop, Civil Aviation Secretary R NChoubey has said the performance of airlines that have wonroutes in the first round would be taken into account whiledeciding on award of routes in the second round.
"If we find that their (airlines) progress is not up tothe mark, then we will not rush into awarding any route in thesecond round of bidding if they have won. We would like tolink their performance and progress in the first bidding roundto any route that they may have won in the second round ofbidding," he said on Tuesday.
He also stressed that performance of such airlines wouldbe monitored.
Five airlines, including SpiceJet, had won bids tooperate on 128 routes connecting 70 airports in the firstround of RCS bidding.
Air Odisha Aviation got maximum number of 50 routesfollowed by Air Deccan (34) and Turbo Megha Airways (18). TheAir India subsidiary Airline Allied Services bagged 15 routeswhile SpiceJet won bids for 11 routes.
However, Air Deccan and Air Odisha are yet to startoperations on account of various factors, including issuesrelated to availability of slots.
According to Choubey, Air Odisha and Air Deccan areexpected to commence significant part of their operations byDecember 15.
About collection of RCS levy, he said the paper work-related to Goods and Services Tax (GST) is under progress.
Under RCS, airlines are eligible for viability gapfunding. The amount is shared between the Centre and thestates concerned. The levy is collected per departure fromairlines operating flights on major routes.
"Since the GST has come, there are some exemptions wehave to seek. The paper work has already started.
"We are working on a certain manner of ensuring thatthere is no reduction in availability of funds (for RCS) onaccount of GST. The exact process is being discussed with theDepartment of Revenue," Choubey said.
A trust has been set up under the Airports Authority ofIndia (AAI) where the levy collections are parked. PTI RAMSBT.
This is unedited, unformatted feed from the Press Trust of India wire.