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MoU signed to boost State air connectivity

By Staff Reporter

GUWAHATI, Nov 4 - Giving a fillip to regional connectivity in the aviation sector, the Government of Assam today inked a memorandum of understanding (MoU) with the Ministry of Civil Aviation, Government of India and Airports Authority of India under the Regional Connectivity Scheme (RCS)-UDAN, said an official press release here.

The MoU was signed by the Chairman of Airports Authority of India, Dr Guruprasad Mohapatro and Commissioner and Secretary, Government of Assam, Ashutosh Agnihotri in the presence of Chief Minister Sarbananda Sonowal and Union Civil Aviation Minister Ashok Gajapati Raju here today.

The Union Ministry of Civil Aviation (MoCA) announced the National Civil Aviation Policy 2016 (NCAP 2016), with the objectives to enhance regional connectivity through fiscal support and infrastructure development and establish an integrated eco-system conducive to the growth of civil aviation sector. The policy also aimed at promoting tourism, boosting employment and bringing a resultant balanced regional growth in the Northeast. Accordingly, MoCA has envisaged a RCS for the country and it was inaugurated today.

Under the RCS, the Central Government shall provide 90 per cent share of viability gap funding (VGF) to Assam. In addition, the Central Government shall provide concessions on service tax on tickets.

As per the MoU, the State Government shall reduce VAT to one per cent or less on ATF at RCS airports and for RCS flights from other airports located within the State. The Government of Assam shall also provide minimum land, if required, free of cost for development and expansion of RCS airports and also provide multi-modal hinterland connectivity (road, rail, metro, waterways, etc.) as required. Security and fire services shall be provided free of cost at RCS airports and electricity, water, other utility services shall be provided at substantially concessional rates.

The Airports Authority of India (AAI) shall be the implementing agency for the scheme on behalf of the Ministry of Civil Aviation, Government of India.

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