The Gujarat government has inked a tripartite MoU with the Ministry of Civil Aviation and the Airport Authority of India (AAI) to develop 11 small airports and airstrips under the Centre’s Regional Connectivity Scheme (RCS) to boost regional air connectivity in the State.
As per the MoU provisions, Gujarat and the Centre will jointly undertake development and upgrading of infrastructure in 11 unserved or underserved airports and airstrips in Bhavnagar, Bhuj, Jamnagar, Surat, Porbandar, Mehsana, Mandavi, Amreli, Kandla, Keshod and Deesa.
The Centre will provide the financial resources under viability gap funding of the RCS.
Gujarat became the third State after Jharkhand and Maharashtra to have signed such an agreement to seek the Centre’s support to provide financial assistance to create infrastructural facilities in small airports.
Another component of the subsidy will be cheaper aviation turbine fuel (ATF) at two per cent excise and reduced VAT (value added tax).
