BHUBANESWAR : The state cabinet on Saturday cleared a proposal to continue and rationalise the viability gap funding (VGF) for select international air routes from Bhubaneswar till March.
The move, officials said, is aimed at sustaining global connectivity, supporting the Odia diaspora and strengthening the state’s aviation-led economic growth.
Approval of the proposal by Commerce and Transport department came amid growing uncertainty over continuation of some international services operated by IndiGo from Biju Patnaik International Airport, particularly the Dubai route, which has emerged as a lifeline for thousands of Odias working abroad.
As per the cabinet decision, the VGF support will be extended for the Bhubaneswar-Dubai route for a six-month period during the winter schedule 2025 (October 27, 2025 to March 29, 2026) under the state’s new destination policy. The continuation was proposed in view of a sharp decline in passenger load factor after withdrawal of earlier support and growing risk of the route being discontinued.
Similarly, the Bhubaneswar-Singapore service will receive VGF for a six-month period with updated cost indexation. Despite its strategic importance, the route continues to face commercial challenges owing to low passenger load factors and high operating costs.
The VGF support proposed for the two routes for the six-month period is estimated at around Rs 26.87 crore which will be met from the approved allocation under the Building and Maintaining Aviation Assets and Networks (B-MAAN) scheme.
Explaining the rationale, the officials said Dubai is a major hub for Odia migrant workforce and direct connectivity is crucial to avoid dependence on indirect travel via other cities, which increases travel time and cost. The Dubai route also offers seamless onward connectivity from other GCC countries, Europe and beyond.
On the other hand, Singapore remains a key partner for Odisha in trade, investment and institutional collaboration. Sustained international operations are considered essential not only to retain valuable airport slots but also to stabilise routes and advance Odisha’s long-term vision of emerging as a regional aviation hub.
The cabinet also decided to withdraw the VGF support for two international routes - Bhubaneswar-Bangkok route from October 27, 2025 and Bhubaneswar-Abu Dhabi route from December 11, 2025.
Chief secretary Anu Garg said the rationalisation is intended to stabilise priority international routes and ensure more effective use of public funds. “Any further continuation or modification of international routes will be decided at the level of the chief minister, based on periodic performance reviews,” she said.