Saturday, February 01, 2020

Budget 2020: Aims at improving connectivity through regional flights, airports

New Delhi: The Union Budget aims to improve regional air connectivity in the country with announcements on building 100 airports for regional flights and launch of airlines for farmers under the regional connectivity scheme.
 In the Budget speech, finance minister Nirmala Sitharaman announced that the aviation ministry would launch a flight scheme to help farmers ferry their produce on flights. “KrishiUdaan will be launched by the Ministry of Civil Aviation on international and national routes. This will immensely help improve value realisation especially in North-East and tribal districts,” Sitharaman announced in the Budget today.
 This scheme of subsidised international and domestic flights will be an extension of the Ude Desh ke Aam Nagrik (UDAN) scheme that entails providing subsidised flights for Rs 2,500 per hour of flight. For these flights, the government subsidises the cost of operations and also provides other incentives too like no landing and parking charges and low tax on fuel. She also added that the government will add 100 new airports to aid the regional connectivity scheme by 2024.
 “Air traffic has been growing rapidly in the country as compared to global average. One hundred more airports would be developed by 2024 to support Udaan scheme. It is expected that the air fleet number shall go up from the present 600 to 1200 during this time. I propose to provide about Rs 1.70 lakh crore for transport Infrastructure in 2020-21,” She announced.
01/02/20 Mihir Mishra/Economic Times

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