QUESTION

Will the Minister of CIVIL AVIATION be pleased to state
(a) whether it is a fact that in addition to the Viability Gap Funding (VGF) offered by Government, many State Governments also offer VGF to airlines;
(b) if so, the States that have given VGF and the airlines to which VGF has been given to;
(c) the total VGF given by Government during the last three years, till date, airline-wise, sector-wise; and
(d) whether there is any plan to replace VGF with public investment?

ANSWER

Minister of State in the Ministry of CIVIL AVIATION  (Shri Murlidhar Mohol)

• A: Under the Regional Connectivity Scheme (RCS) – UDAN, the Viability Gap Funding(VGF) is provided by the State government in following two ways:
  1. Normal VGF Routes in which out of the total VGF paid by Ministry of Civil Aviation, 10% and 20% are contributed by the State Governments on reimbursement basis for priority area and non- priority area respectively.
  2. State sponsored VGF routes for which State Governments reimburse 100% of VGF. Certain State Governments have developed their own VGF model wherein VGF is paid to the Airlines directly by the State for the routes decided by the State.
• B: Under RCS Scheme, three States ,namely, Uttar Pradesh, Odisha and Himachal Pradesh have offered 100 % state sponsored VGF

routes and the Airlines who have been awarded the routes are Spicejet, GSEC Monarch and Alliance Air.

• C: The total VGF given by the Government during last three financial years, under the RCS-UDAN scheme, airline-wise, are at Annexure.

• D: There is no such plan so far as the existing RCS-UDAN Scheme is concerned.

ANNEXURE

 Details of VGF (including GST reimbusred on Airfare) paid to SAO’s during last three Financial Years