BHUBANESWAR: The state cabinet headed by Chief Minister Mohan Charan Majhi on Wednesday cleared a new civil aviation policy that would significantly enhance air connectivity across Odisha.
The policy offers substantial financial incentives to airlines for launching new domestic and international air routes serving Biju Patnaik International Airport at Bhubaneswar, Veer Surendra Sai Airport at Jharsuguda, and airstrips at Jeypore, Rourkela, and Utkela.
As per the new policy, airlines launching new scheduled services would receive viability gap funding (VGF) of Rs 5 lakh per round trip for domestic routes and Rs 10 lakh for international routes, with potential routes exceeding 750 km. The VGF support will mitigate the financial risk and make new routes more attractive.
The policy also prioritises connecting the underserved regions and ensures fairer access to air travel in the state. It is expected to generate significant economic benefits, stimulate tourism, enhance trade and commerce, besides fostering job growth in related sectors and driving regional development, especially in Western Odisha.
Briefing about the policy, chief secretary Manoj Ahuja said the airlines will have to meet strict eligibility criteria including minimum aircraft capacity of 50 seats for domestic and 180 for international routes, DGCA approvals, and a commitment to sustainable and non-stop operations to receive the financial support.
“The policy focuses on sustainable long-term air connectivity on routes having strong demand from travellers. Since studies indicate substantial economic multipliers from increased air connectivity, the new policy is expected to boost trade, tourism and economy,” he said.
The Odisha policy aligns with the National Civil Aviation Policy and the UDAN scheme, strengthening the state’s commitment to improved air connectivity and aviation infrastructure. It will improve aviation infrastructure and enhance the quality of life for citizens through enhanced connectivity and economic growth.
A high-power committee (HPC) led by the chief secretary will oversee implementation and monitor route performance to ensure accountability and effective programme management.
Odisha has 26 airports/airstrips including one international and five private and commercial each. The commercial flight services have already been started from Jharsuguda, Rourkela, Jeypore, Utkela and Rangeilunda (non-scheduled) apart from Bhubaneswar.