The Odisha government on Wednesday announced a financial incentive policy for airlines in a bid to enhance air connectivity across the state.
The scheme offers a substantial financial incentive to airlines, encouraging the launch of new domestic and international air routes serving the Biju Patnaik International Aiport in Bhubaneswar, the Veer Surendra Sai Airport in Jharsuguda, and smaller airports in Jeypore (Koraput), Rourkela, and Utkela (Kalahandi).
The cabinet approved the initiative on Wednesday.
Under this scheme, airlines launching new scheduled services will receive viability gap funding (VGF). This includes ₹5 lakh per round trip for domestic routes and ₹10 lakh for international routes, with potential additions for routes exceeding 750km.
According to the government, the policy prioritises connecting currently under-served regions, ensuring fairer access to air travel across Odisha.
“Airlines must meet strict eligibility criteria including minimum aircraft capacity — 50 seats for domestic and 180 for international, DGCA (Directorate General of Civil Avitation) approvals and a commitment to sustainable, non-stop operations,” the release said.
Chief secretary-led high power committee (HPC) will oversee the implementation of the policy, monitor route performance and adapt the policy as needed.
According to the government, the policy is expected to generate significant economy benefits such as stimulating tourism, fostering job growth in related sectors, enhancing trade and commerce and driving regional development.
