Karnataka signs MOU with Civil Aviation Ministry for Mysuru, Bidar and Ballari Airports

Thursday, April 20, 2017

Bangalore: The Karnataka State government and the Civil Aviation Ministry signed a memorandum of understanding on air connectivity to Mysuru, Bidar and Vidyanagar (Ballari ) Airports under the regional connectivity scheme (RCS), known as UDAN (Ude Desh ka Aam Nagrik).

As per the MOU air connectivity to Vidyanagar airport will commence next month and Mysuru and Bidar will be connected by September 2017.

The Union and State governments will bear the cost of viability gap funding in the ratio of 80:20. The concessions provided by the State to airlines operating under the RCS routes include reduced sales tax of 1% or lower cost of Aviation Turbine Fuel (ATF) for a period of 10 years and provision of minimum land, if required, free of cost and free from all encumbrances for development and expansion of these airports. Provision for free security and fire services and making electricity, water and other utility services at substantially reduced rates.

The all-inclusive airfare under RCS is Rs. 2,500, and the airfare cap will be indexed to inflation and revised quarterly. Prime Minister Narendra Modi will launch the scheme from Shimla airport on April 27. A total of 45 airports have been selected in the first round of bidding, said Rajiv Nayan Chaube, Joint Secretary of Civil Aviation.

Industries Minister R.V. Deshpande, who was present at the MoU signing ceremony, urged the Civil Aviation Ministry to operate more flights between Bengaluru and Hubballi and on the Mumbai route.

The Centre has identified 19 airports in Karnataka under RCS. Chikkamagaluru, Kushalnagar, Karwar, Harihar, Ammasandra, Koppal, Bengaluru, Ballari, Bidar, Ginigera (Hosapete), Hassan, Jakkur, Kolar, Mysuru, Raichur, Shahabad, Vidyanagar, Yadgir and Yelahanka are the Airports selected in Karnataka under RCS.