U'khand rejects subsidy for air connectivity

A subsidy model to boost air connectivity in Uttarakhand has been rejected by the state government.
Instead, the government will explore new options to boost the air connectivity in the hill state which is in bad shape. "Our past experiments show that the subsidy is not the right answer to boost air connectivity. Hence we have rejected this model," said Infrastructure Development Commissioner Alok Jain following a high level meeting here today. The state government had been paying heavy subsidy to Jagson Airlines in the past but the arrangement did not work for a longer duration.
The subsidy model was prepared by the Uttarakhand Infrastructure Project Company (UIPC) limited, a joint venture company between the state government and the IL&FS.
Currently, Dehra Dun is the only city in the state which is having regular flights through Air India, and Kingfisher airlines. But there is no connectivity to Kumaon region especially to the industrial hub of Pantnagar where people face tough time to reach there. Industrialists and other businessmen usually come by roads to the state losing their precious time in travel.
20/10/10 Shishir Prashant/Business Standard/Sify.com

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Categories: airports Oct 2010