The government, with an intention to improve regional connectivity, had launched the UDAN (Ude Desh Ke Aam Naagrik) scheme in October 2016 which would provide incentives to airlines with fares capped at Rs 2500 for one-hour flights.
In January, the Airports Authority of India (AAI) received 45 initial proposals from 11 bidders covering more than 200 regional connectivity scheme (RCS) routes.
Now, sources tell CNBC-TV18 the routes and airlines for the RCS will most likely be announced post the Uttar Pradesh poll results around March 15.
The routes would be awarded to bidders who quote the lowest Viability Gap Funding (VGF) requirement against the routes. However, the tech review committee will start its financial assessments of bids under UDAN.
While the deadline for submitting initial proposals had ended on January 16, the counter bids for them were submitted till February 1.
They are looking at Mumbai, Kolkata Delhi, other regions like Bhubaneshwar, Ahmedabad along with smaller towns from which this scheme is likely to kick-start.
However, Delhi High Court is hearing a case that has challenged this scheme.
So far, SpiceJet was the only private airline which said they will not take any government sops or subsidies as far as regional connectivity route schemes are concerned.
The scheme when implemented will be a huge benefit for not only traders and businessmen but would also boost tourism, enable quick medical aid, connect tier-2 and tier-3 cities etc.(With inputs from PTI)
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