Hyderabad: The civil aviation ministry’s regional connectivity scheme, which was approved by the Union Cabinet on Thursday, is being trashed by some officials here as not good and a burden on the state government. They argued that the scheme would hurt the financially and in “other aspects” as well.
The state government had proposed at least six airports to improve air connectivity. For this purpose, it decided to implement the Centre’s regional connectivity scheme which gives them 80 per cent of the funds by way of viability gap. The state government has to pay only 20 per cent of the viability gap funds apart from providing free land, free power and water supply.
Under the scheme, the burden of security maintenance in the airports rests with the state government. According to RCS, the state government has to reduce the VAT to 1 per cent on Aviation Turbine Fuel at RCS airports for 10 years.
The state government has to provide required land for construction of airports free of cost and free from all encumbrances. It also has to provide multi-model hinterland connectivity such as road, rail, Metro, and waterways, as required.
The state has to provide security and fire services free as also electricity, water and other utility services at concessional rates. Under viability gap fund, the Central and state governments should share cost at the rate of 80:20 respectively.
The Central government will levy two per cent excise duty on aviation turbine fuel purchased by airline operators from RCS airports for an initial period of three years.
The state government wants to develop airports under Public Private Partnership mode. It has proposed airports at Bhogapuram, Dagadarthi, Orvakallu, Kuppam, Tadepalligudem and Ongole.
Officials argued that except for providing 80 per cent of the viability gap fund, all other things have to be provided by the state government.
