The Airports Authority of India (AAI) has commenced the process for developing small airports in Chhattisgarh under the Regional Connectivity Scheme (RCS). The AAI is now looking for a consultant for starting talks with Chhattisgarh Government on land-related matters pertaining to airports and aeronautical communication stations (ACSs) in the existing and upcoming airports to be developed by the civil aviation body in Chhattisgarh, official sources said.
Notably, Chhattisgarh has signed MoU with the Union Ministry of Civil Aviation for promoting Centre’s Regional Connectivity Scheme (RCS) in the State, officials said.
The Union Ministry of Civil Aviation is in the process of signing an MoU with State Governments to ensure their commitment and support to regional air transport operations by providing concessions as required under the RCS for making it successful.
The Union Ministry of Civil Aviation had earlier released the draft Regional Air Connectivity Scheme (RCS) for stakeholder consultation, with twin objectives of promoting balanced regional growth and making flying affordable for masses.
The RCS is the key component of the National Civil Aviation Policy which was released by the Ministry on June 15, 2016. The scheme, which would be in operation for a period of 10 years, envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. This would be achieved through a financial stimulus in the form of Central and State government concessions, as well as Viability Gap Funding to the interested
airlines to kick-off operations from such airports, so that
the passenger fares are kept affordable.
The fare for an hour journey of approximately 500 km on a fixed wing aircraft or for a 30 minute journey on a helicopter would now be capped at Rs 2,500, with proportionate pricing for routes of different lengths / duration.
To reduce the cost of operations, Central Government would be providing concessions in the form of reduced rxcise on VAT, service tax and flexibility of code sharing at the RCS airports.
Similarly, the State governments would have to lower the VAT on ATF to 1% or less, besides security and fire services free of cost and electricity, water and other utilities at substantially concessional rates.
Similarly, landing and parking charge and terminal navigation landing charges shall not be imposed by the airport operator. A Regional Connectivity Fund would be created to fund the VGF requirements under the scheme. The same would be funded through a levy on certain domestic flights.
The partner State Governments would also contribute a 20% share to this fund (10% for North Eastern States). For balanced regional growth, the allocations under the scheme would be equitably spread across the 5 geographical regions of the country viz North, West, South, East and North-east.
The States have been given a key role under the scheme. The selection of airports where RCS operations would be done in consultation with State Government and after confirmation of their concessions. This will be based on the selection of routes by the airline operators.
Notably, Chief Minister Raman Singh on January 26 had performed bhoomi puja for construction of terminal building and for taking up expansion works for Jagdalpur airport in Bastar.
The Chief Minister while addressing the gathering said that with the construction of terminal building, flights would be started soon which will surely benefit the people of Bastar division.
The State government has inked Memorandum of Understanding with Air India for launching flights whereas the monetary loss to the airline if any would be borne by the State government as per the MoU, Singh further said. However, he expressed hope that there would be no loss for providing air services as most of the people want to travel by air from Jagdalpur. Meanwhile, Bastar District Collector Amit Kataria said that the State government has approved Rs 25 crore for the fiscal 2016-17 to develop infrastructure for providing passenger air services in Bastar division.