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Published on : Monday, August 21, 2017
Yogi Adityanath government has decided to make Uttar Pradesh a hub for the airline industry by proposing a mega incentive policy for any of the airline company that is ready to offer direct air connectivity between the three prominent cities- Lucknow, Varanasi and Gorakhpur.
At present, there is no flight from the state capital Lucknow to PM Modi’s Lok Sabha constituency Varanasi or Gorakhpur. Now anyone, who want to fly from Lucknow, needs to fly to Delhi first.
Varanasi and Lucknow are even international airports. The BJP led government in Uttar Pradesh is now set to correct this regional irregularity in the state’s air connectivity by offering incentives to attract airlines.
As per the draft of the State Civil Aviation Promotion Policy of Uttar Pradesh 2017, the state has proposed to reimburse the GST share on tickets to the first airline which offers inter-connectivity on a route between these centres.
The VAT on air turbine fuel (ATF) for these routes will also be waived off by Uttar Pradesh. The airline will also get the compensation equivalent to the state’s viability gap funding (VGF) share of Rs 400 per seat on half of the seats on the flight and UP will be underwriting Rs 2,500 per vacant seat up to total 15 per cent of seats on the flight.
Right now, there are the flights from Lucknow to Mumbai, Kolkata, Patna, Delhi, Dehradun, Bengaluru and Bhopal and from Varanasi to some of these centres.
Uttar Pradesh wants more centres to be connected and is bringing a new policy as there is no comprehensive state civil aviation policy in UP so far.