Centre identifies 13 unserved airports in TN under Udan scheme

The Central government has identified 13 unserved airports or airstrips in Tamil Nadu under the ‘Udan’ scheme, also known as the Regional Air Connectivity Scheme (RCS). It has also initiated discussion with the State government to enable the early take-off of the scheme.

According to a government document, the chosen sites are in Arakkonam, Chettinad, Cholavaram, Hosur, Kayathar, Neyveli, Ramanathapuram, Salem, Sulur, Tambaram,Thanjavur, Ulundurpet and Vellore. They are only tentative. The final list will be out when the Centre and the State enter into a memorandum of understanding to execute the scheme, explained a State government official.

The scheme, aimed at facilitating or stimulating regional air connectivity by making it affordable, envisages the provision of concessions by the Central and State governments and airport operators to airline service providers. A Viability Gap Fund (VGF) has been proposed to meet the gap between the cost of airline operations and expected revenue. As the role of the State governments is critical in making the scheme successful, the Centre has been pursuing the matter with the Tamil Nadu government too. Among the commitments of the States are those to make sufficient land available; ensure adequate security and provide essential services at concessional rates for the airports or air strips. The Centre would like the States to provide minimum land, free of cost, for development of the RCS airports. The rate of value added tax on Aviation Turbine Fuel (ATF) should be reduced to one per cent or less at RCS airports for 10 years. In the event of the Goods and Services Tax coming into force, the rate, as determined under the GST, will be applicable. More importantly, the States will have to bear 20 per cent towards VGF. The share will be 10 per cent for North Eastern States and Union Territories.

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Printable version | Oct 22, 2021 10:29:14 AM |

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