key features of new civil aviation policy
Regional Connectivity Scheme -This scheme will come into effect in the second quarter of 2016-17 - Airfare of about Rs 2500 per passenger for a one-hour flight -This will be implemented by way of: Revival of airstrips/airports as No-Frills Airports at an indicative cost of Rs 50 crore to Rs 100 crore Demand driven selection of Airports/airstrips for revival in consultation with State Govts and airlines Viability Gap Funding(VGF)to airline operators RCS only in those states which reduce VAT on ATF to 1% or less, provide other support services and 20% of VGF - Concessions by Stakeholders There will be no airport charges Reduced Service tax on tickets (on 10% of the taxable value) for 1 year initially Reduced Excise duty at 2% on ATF picked at RCS airports State government will provide police and fire services free of cost. Power, water and other utilities at concessional rates -Creation of Regional Connectivity fund for VGF through a small levy per dep...