MANU/PIBU/0476/2016

Department/Board : Press Information Bureau

Date : 15.06.2016

National Civil Aviation Policy, 2016 : Salient Features

The Minister of Civil Aviation Shri P. Ashok Gajapathi Raju released the National Civil Aviation Policy 2016 in New Delhi today. This is the first time since independence that an integrated Civil Aviation Policy has been brought out by the Ministry. Speaking on the occasion Shri Raju said that the centre-piece of the policy is to make regional air connectivity a reality. He said that the policy aims to take flying to the masses by making it affordable and convenient, establish an integrated eco-system which will lead to significant growth of the civil aviation sector to promote tourism, employment and balanced regional growth, enhance regional connectivity through fiscal support and infrastructure development and enhance ease of doing business through deregulation, simplified procedures and e-governance.

The policy is very comprehensive, covering 22 areas of the Civil Aviation sector. Its salient features are as follows :

Regional Connectivity Scheme

• This scheme will come into effect in the second quarter of 2016-17

• Airfare of about Rs2500 per passenger for a one-hour flight

• This will be implemented by way of:

• Revival of airstrips/airports as No-Frills Airports at an indicative cost of Rs.50 crore to Rs100 crore

• Demand driven selection of Airports/airstrips for revival in consultation with State Govts and airlines

• Viability Gap Funding (VGF) to airline operators

• RCS only in those states which reduce VAT on ATF to 1% or less, provide other support services and 20% of VGF

• Concessions by Stakeholders

• There will be no airport charges