Speed Post News Network
New Delhi : The Ministry of Civil Aviation (MoCA) announced the commencement of the bidding process under Ude Desh ka Aam Naagrik (UDAN) 4.0 on December 3, 2019, with a focus on the NER, Hilly States, J&K, Ladakh, and Islands.
Under UDAN 4.0, MoCA has put on offer bids for 11 unserved airports in the Jammu and Kashmir and 2 underserved airports in Ladakh region. The objective is to establish strong air connectivity and to boost the tourism sector. Under the UDAN 4.0 scheme, the MoCA is also providing additional VGF of around 25% extra to the airlines.
Airports available for bidding under UDAN 4.0 in J&K and Ladakh are : Airports available for bidding in Ladakh – Kargil and Thoise ; Airports available for bidding in Jammu & Kashmir – Akhnur, Chamb, Chushal, Fukche, Gurex, Jhangar, Miran Sahib, Panzgam, Poonch, Rajouri & Udhampur, according to a PIB release.
Excise Duty at the rate of 2% only shall be levied on Aviation Turbine Fuel (ATF) drawn by Selected Airline Operators at Regional Connectivity Scheme (RCS) Airport(s) for RCS Flights, for three years from the date of notification. Upon transition to GST, rates will be applicable as determined under GST and exemptions/ concessions shall be given as permissible so that such a reduced level of taxation could ideally be continued.
MoCA aims to operationalise 1,000 routes and more than 100 airports in next five years. This would be achieved by focusing on operationalising routes in Priority Areas. AAI would focus on developing the no-frills airport in future and routes connecting such airports would be prioritised for the award of Viability Gap Funding (VGF). The market would be incentivised to develop short-haul routes only providing connectivity to nearby airports.