Odisha is geographically located on the eastern coast of India and the average flying time from the State capital (Bhubaneswar) to major cities of the country is about 2.5 hrs. The Biju Patnaik International (BPI) Airport, Bhubaneswar (1962) is the only international airport in the State in addition to the Veer Surendra Sai (VSS) Airport, Jharsuguda (2017), a domestic airport; both owned and operated by the Airport Authority of India (AAI). In addition, two (02) airports are at Rourkela (2B licensed) and Jeypore (2B VFR licensed) in the districts of Sundargarh and Koraput respectively.
The Ministry of Civil Aviation (MoCA), Govt. of India is the promoter for the sectoral growth in India and formulates policies and guidelines for regional growth in civil aviation. In 2016, the MoCA has formulated National Civil Aviation Policy (NCAP), 2016 with an aspirational vision for a decade. Nonetheless, a regional connectivity scheme namely UDAN (Ude Desh ka Aam Naagrik) was further conceived by the Ministry which has salient features such as Govt. support (limited), cooperative federalism, capped airfares and the selection of operators through a transparent and competitive bidding. Currently, Odisha has seven (07) RCS routes.
Currently, Odisha has 19 airports/airstrips of which 12 are state-owned. In addition, there are as many as 13 heliports in the State. The Biju Patnaik International (BPI) Airport, Bhubaneswar is licensed for the operation of intra-state, inter-state and international flights while the Veer Surendra Sai (VSS) Airport, Jharsuguda and Jeypore Airport, Koraput are providing intra-state and inter-state flights.
To harness faster augmentation of the aviation infrastructure in the State with an investor-friendly ecosystem to improve regional air connectivity, create sectoral skilled resource pool, and maintenance, repair, and overhaul (MRO) facilities in the State over a span of five (05) years.
Govt. of Odisha, through this policy, envisages promotion and growth of civil aviation sector in the State. The objectives have been set out in accordance with the NCAP 2016 are as follows:
Partnering with private operators
Create business environment that attracts Airline Operators to invest and monetise the untapped potential in the aviation sector and lead to balanced regional growth in the State through establishment of a single window system that would provide all the required facilities and assistance to promote the whole value chain in the sector.
Increase employment opportunities
The DoCA shall be the Nodal Agency for the development of aviation and related infrastructure in the State. The Nodal Agency may engage SMEs for expert advice and shall explore the following aspects in due consultation with the HPC and MoCA / AAI /DGCA.
|Incentive Name||Incentive Particulars|
|VAT or ATF to Airline Operator||1% for all RCS flights (as per the Finance Department Notification vide 24567/F, dated: 22.8.2017)|
|VGF to Airline Operator||@20% as state share of the 50% seats of RCS aircrafts shall be borne by the state for three (03) years and subject to review after 3 years (as per NCAP 2016)|
|Seat underwriting to Airline Operator||To be decided by the State Government/ HPC based on routes and operational profitability to the Operator|
|Office space to Airline Operator||Up to 100 M2 on free-lease basis|
|Physical security and fire services to Airline Operator||To be provisioned by the State Government for free|
|Electricity / Water supplies to Airline Operator||To be provided at substantially concessional rates by the State Government|
|Subsidy on license fees for Aviation Fuelling Station to Oil Marketing Companies||Up to 1,600 M2@Re.1/- per M2|
|Ambulance services to Airline Operator||To be provisioned by the State Government for free|
The State Government is keen to prepare a framework for use/develop and maintenance of non-RCS airports by the Commerce & Transport (Transport) Department in consultation with the State Departments of Law, Finance, Home and Works under the guidance of the AAI / DGCA / MoCA, GoI.
Additional support may also be offered by the State Government for a period to be decided by the HPC, with private participation or in PPP model, which shall be as follows: