Udan scheme: State to provide free land, tax sop to airlines
Bengaluru: April 13, 2017, Deccan Herald News Service 1:47 IST
To sign MoU with Centre soon to implement scheme in K'taka
The Karnataka Cabinet on Wednesday gave approval to a proposal to extend sales tax concession of 1% on aviation fuel and provide land free of cost for implementing the Centre’s Udan (Ude Desh Ka Aam Nagrik) scheme in the state.
The Cabinet meeting chaired by Chief Minister Siddaramaiah also agreed to provide security and supply water as well as power free of cost to airlines that operate flights under the scheme, which envisages providing regional connectivity. Besides, the Cabinet has agreed to bear 20% of Viability Gap Funding (VGF) to be extended to airlines.
The state government will soon sign a Memorandum of Understanding (MoU) with the Civil Aviation Ministry to implement the scheme in Karnataka. Four airports – Bengaluru, Bidar, Mysuru and Vidyanagar (Ballari) – have been taken up for bidding under the scheme by the Ministry. Under “Ude Desh Ka Aam Nagrik” (Let the Common Man Fly) or Udan scheme, airlines that qualify in the bidding will be provided with VGF to operate flights to under-served airports. Airfares would be capped at Rs 2,500 for a one-hour flight.
Civil Aviation Policy
Briefing reporters about decisions taken by Cabinet, Law Minister T B Jayachandra said the National Civil Aviation Policy-2016 has been approved by the Cabinet.
This apart, the Cabinet approved implementation of Karnataka State Wide Area Network (KSWAN) project 2.0 which envisages bridging digital divide in the state, Jayachandra said.
All 10,000 government offices up to gram panchayat level will be inter-connected by providing LAN and WAN services so that citizens from anywhere in Karnataka can access the government services and information irrespective of geographical location.
KSWAN 2.0 project will be implemented under National Information Infrastructure project at a cost of Rs 615 crores. The Centre for e-governance has entered into an agreement with Wipro to implement the project, the minister added.
DH News Service
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