Today in Gandhinagar, Gujarat Chief Minister Vijay Rupani witnessed MoU Memorandum of Understanding, signing ceremony which will boost RCS Regional Connectivity Scheme will support air connectivity, as it promotes affordable flying.
As a promotion, GOI Government of India will provide concessions to the tune of 2 % Excise on VAT and Service Tax at 1/10th the rate and liberal code sharing for RCS airports. The state government will become key partners by providing free security and fire service, utilities at concessional rates and reduce VAT on ATF Aviation Turbine Fuel to 1 %, to reduce fuel cost.
The regional connectivity scheme will be in operation for 10 years with individual route contracts to be for a 3-years period.
Airport Authority of India (AAI) has plans to augment air connectivity in tier 2 and tier 3 cities.
The Aviation Ministry has entrusted AAI with the responsibility of providing low-cost airports in the country. At present, India has about 450 airports and airstrips out of which only around 125 airports are operational.
As regards existing airports, the airport operator is planning to take up Ahmedabad and Jaipur airports on management contract for upgrading their facilities.
