Himachal seeks 90:10 Centre-state funding for UDAN air connectivity

Newspoint
Shimla : The Himachal Pradesh govt has sought a revised 90:10 funding pattern for viability gap funding (VGF) under the regional connectivity scheme – UDAN – citing the higher cost of operating air services in the state’s difficult mountainous terrain.

A tripartite memorandum of understanding (MoU) was signed in New Delhi on Tuesday between the Himachal Pradesh govt, the Union ministry of civil aviation and the Airports Authority of India (AAI) to strengthen air connectivity and aviation infrastructure in the hill state.
Hero Image

Secretary, tourism and civil aviation, Sandeep Kumar said the MoU was signed in the presence of Union civil aviation minister Kinjarapu Rammohan Naidu and minister of state for civil aviation Murlidhar Mohol .

The agreement provides a framework for cooperation on existing and new UDAN routes besides development and operationalisation of eligible aviation infrastructure. The MoU will remain valid for 10 years, Kumar said.

Under the existing arrangement, the state govt contributes 20% of the VGF, while the remaining 80% is borne by the Centre.

The secretary said chief minister Sukhvinder Singh Sukhu had recently urged the Union civil aviation minister to revise the ratio to 90:10, with 90% central support and 10% state contribution.

He said stronger air connectivity would boost tourism, facilitate the movement of tourists and business travellers and improve access to remote areas, while also supporting aviation infrastructure development.