BENGALURU: The state government on Thursday signed a memorandum of understanding (MoU) with the Ministry of Civil Aviation and the Airports Authority of India to improve air services to Mysuru, Bidar and Ballari airports under the Union government’s Regional Connectivity Scheme (RCS), popularly known as UDAN (Ude Desh Ka Aam Nagrik).
The MoU binds the Union and the state governments to provide a slew of concessions and incentives to the airlines to operate flights to the airports that come under the RCS scheme.
The incentives include one per cent concession in sales tax on Aviation Turbine Fuel (ATF), providing land free of cost for development and expansion of airports, providing viability gap funding (80 per cent by the Union government and 20 per cent by the state government).
Industries and Commerce Minister R V Deshpande said that more airports in the state would be brought under RCS in the next round of bidding.
“Our officers had discussions with the Secretary of Civil Aviation Department on the expansion of runway of Mangaluru airport and other minor issues related to Belagavi, Hubballi and Mysuru airports,” Deshpande said.
The minister said he was confident of resolving the dispute on operating flights from Bidar airport in the backdrop of the agreement with Hyderabad International Airport which forbids operationalising any airport within a 150 kilometre radius.
Prime Minister Narendra will launch the UDAN scheme from Shimla Airport at Jubbarhatti on April 27.