State extends funding for key int’l flights by 6 months
Bhubaneswar: The Odisha Cabinet on Saturday approved 12 proposals, including continuance of the State Viability Gap Funding (VGF) support for select international air routes from Bhubaneswar and setting up an integrated new-age manufacturing complex at an investment of Rs 17,250 crore.
The proposals were approved at the Cabinet meeting here under the chairmanship of Chief Minister Mohan Charan Majhi. “The Cabinet cleared a proposal of the Commerce and Transport department to continue and rationalise VGF support for international flight operations currently run by IndiGo, connecting Bhubaneswar with Dubai and Singapore,” Chief Secretary Anu Garg told reporters after the meeting.
Stating that these routes were launched earlier with State VGF support to bridge initial commercial viability gaps, the Chief Secretary said that the move comes in view of a decline in passenger load factor following the withdrawal of earlier support, raising concerns over the possible discontinuation of the route.
Apart from Bhubaneswar-Dubai route, the Bhubaneswar–Singapore route will also get VGF support for a six-month period. The step is aimed at optimising public resources while stabilising priority international routes, she said.
The total VGF support proposed for the two routes over the six-month period is estimated at approximately Rs 26.87 crore. The expenditure will be met from the approved allocation under the B-MAAN scheme, the Chief Secretary said, adding that any further continuation, modification, or expansion of international routes will be decided at the level of the Chief Minister, based on periodic performance reviews of route viability and passenger demand. However, the Cabinet did not take any decision on providing VGF support for the Bangkok and Abu Dhabi routes. The Cabinet also approved an industrial investment proposal by Kalyani Group to set up an integrated new-age manufacturing complex at Gajamara in Dhenkanal district. The project will be developed over around 1,100 acres and is expected to significantly strengthen the State’s presence in advanced manufacturing, particularly in the automotive, aerospace, and defence sectors, Garg said.
As estimated, the total proposed investment for the integrated complex stands at approximately Rs 17,250 crore. The project is expected to generate more than 4,800 direct jobs and around 5,500 indirect jobs during the construction and initial operational phases.
