Sunday, February 25, 2018

UDAN: Govt expects Rs 300 cr annually from levy on airlines

New Delhi: The government expects to collect around Rs 300 crore annually from the levy on airlines flying on major routes towards the regional air connectivity scheme, a senior official said.

To partly raise money for viability gap funding requirement under the UDAN (Ude Desh ka Aam Naagrik) scheme, the civil aviation ministry has been collecting the levy since December 2016.

More routes are getting added under the UDAN scheme, which seeks to connect unserved and under-served airports as well as making flying more affordable.

With increasing number of UDAN routes, the ministry is also preparing to deal with higher funding needs in the coming months.

A senior ministry official said the response to UDAN flights has been very positive and many routes are having good occupancy.

Every year, the ministry expects to garner Rs 280 crore to 300 crore by way of levy collected from airlines flying on major routes.

An amount of Rs 5,000 is levied for each departure of flights on major routes. Initially, the levy was Rs 8,500 and was subsequently reduced.
25/02/18 PTI/India Today