FICCI TRANSPORT INFRASTRUCTURE DIVISION
FICCI TRANSPORT INFRASTRUCTURE DIVISION
15th December 2017- 3rd January 2018
ROADS/ INFRASTRUCTURE
Nitin Gadkari asks Ashok Gajapati Raju to explore norms for single-engine seaplanes
Union Transport Minister Nitin Gadkari has asked Civil Aviation Minister Ashok Gajapati Raju to explore a regulatory regime for single-engine seaplanes with a view to facilitating introduction of such planes in the country, an official said. "The minister has requested the civil aviation minister to explore a regulatory regime for single engine seaplanes, keeping in mind all safety aspects," an official said. The development comes against the backdrop of Gadkari along with Raju riding the trial run of seaplanes by budget carrier SpiceJet at the Girgaum Chowpatty off the Mumbai coast on December 9. Prime Minister Narendra Modi on December 12 also flew in a seaplane from the Sabarmati River to Dharoi Dam in Mehsana district on the last day of campaigning for the Gujarat Assembly elections.
Bharatmala a big play for investors, but goal ambitious: ICRA
There are ample opportunities for investors in the government's ambitious Bharatmala project and its success critically hinges on timely land acquisition and adequate funding, rating agency Icra said today. The Cabinet approved the Bharatmala Pariyojana Phase-I, along with other programmes in October 2017 involving around 83,000 km, including Bharatmala's 24,800 km of national highway development by 2021-22. "The Bharatmala programme has the potential to change the entire landscape, if implemented as per the plan... The new approach is unlike the project-based approach adopted in the past (different stretches in different geographies), which led to inconsistent infrastructure development across corridors," Icra said in a statement.
India's first pod taxi project to cost Rs 4,000 cr, follow US safety norms
The much-awaited India's first pod taxi project has moved a step closer to reality after a high-level panel recommended inviting fresh bids for the same conforming to the strictest safety standards on the lines of those prescribed by an American body. The projected Rs 4,000-crore pod taxi scheme -- also known as Personal Rapid Transit (PRT) -- is a dream project of Road Transport and Highways Minister Nitin Gadkari, and the NHAI has been mandated to execute it on Delhi-Gurgaon pilot corridor (12.30 km) from Delhi-Haryana border to Rajiv Chowk in Gurgaon on a PPP (public-private partnership) basis.
Budget 2018: Decongesting big cities on Nitin Gadkari's priority list
In a major plan to decongest cities and improve transportation, the Union road transport ministry has sought an additional Rs 25,000 crore as budgetary support for 2018-19. Union Highways Minister Nitin Gadkari recently wrote to Finance Minister Arun Jaitley seeking around 18 per cent increase in budgetary allocation for his ministry. For 2017-18, the government allocated Rs 64,900 crore to the ministry of road transport and highways. The Rs 25,000 crore sought for 2018-19 is in addition to Rs 79,000 crore the ministry has asked for other programmes. The government is also likely to announce a Rs 2,000 crore plan for procurement of electric buses in the forthcoming Union Budget.
NHAI creates National Highways Investment Promotion Cell
The National Highways Authority of India (NHAI) has created a National Highways Investment Promotion Cell (NHIPC) for attracting domestic and foreign investment for highways projects. The cell will focus on engaging with global institution investors, construction companies, developers and fund managers for building investor participation in road infrastructure projects. The government has set an ambitious target of construction of 35,000 km of national highways in the next five years involving an investment of Rs 5,35,000 crore under Bharatmala. "The primary focus of NHIPC will be to promote foreign and domestic investment in road infrastructure," the government said in a statement.
Road orders in slow lane as they fall to tenth of India's target
Prime Minister Narendra Modi's government has miles to go to achieve its annual road-building goal. The National Highway Authority of India aims to agree contracts for 10,000 kilometers in the year to March, but has managed to award only a little over a one-tenth of the total so far, data from the Ministry of Road Transport and Highways show."There's a chance that FY18 awards could see a decline for second consecutive year," Atul Tiwari, an analyst at Citigroup Global Markets India Pvt. wrote in a Dec. 14 note. "The muted pace of awards will have an impact on construction activity in road sector."
Road construction to reach 40 km per day target next year: Nitin Gadkari
Road, Transport and Highways Minister Nitin Gadkari on Tuesday said road construction would further gather momentum with the average addition of 40 km per day from next year. "When we (government) took over, the average road construction was 2 km per day which has now been accelerated to 28 km per day. It will further go up to 40 km per day next year," he said while replying to debate on the Bill to amend Central Road Fund (CRF) Act 2000.
350 infrastructure projects see cost overrun of Rs 1.95 lakh crore
As many as 350 infrastructure projects, each worth Rs 150 crore or above, may see a cost overrun of Rs 1.95 lakh crore because of various reasons including delays, according to a government report. Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above. "Total original cost of implementation of the 1,263 projects was Rs 15,53,683.89 crore and their anticipated completion cost is likely to be Rs 17,49,427.56 crore, which reflects overall cost overruns of Rs 1,95,743.67 crore (12.60 per cent of original cost)," the ministry's flash report for September this year has stated. According to the report, the expenditure incurred on these projects till September 2017 is Rs 6,79,801.38 crore, which is 38.86 per cent of the anticipated cost of the projects. The 1,263 projects in question include 350 that reported cost overrun and 297 that showed time escalation.
Transport Ministry to seek Rs 5,000 crore for electric bus fleets, bus ports
The road transport and highways ministry will seek separate budgetary allocation of Rs 5,000 crore for introducing government-owned electric bus fleets and building world-class bus ports across the country, Union minister Nitin Gadkari has said. The ministry plans to set up special purpose vehicles with state governments and road transport corporations, under which it will provide funds to procure electric buses and modernise public transport system, Gadkari told ET. "State transportation corporations should phase out the cost intensive diesel buses and must induct e-buses to bring down their losses," he said. "With the scale, their cost of operations would fall by almost 50% making them profitable. We can also have private sector-run e-buses by providing them subsidy and incentives," the minister said. "I will soon write to finance minister Arun Jaitley regarding the same along with pushing the proposal with state transport ministers," Gadkari said.
RAILWAYS
Railways eyeing to triple its freight traffic by 2030: Piyush Goyal
The Indian Railways has set a target to triple its freight traffic to 3 billion tonne by 2030, Railway Minister Piyush Goyal said today. He said the railways was looking to come out with a "reciprocation" strategy on bidding for major projects. Under the strategy, companies from only those countries which allow Indian firms to bid for their development projects would be allowed to participate in similar projects in India, Goyal said.
Railways set to start Rs 10,000-crore track renewal exercise to replace 8,000 km of lines
Indian Railways will soon start its largest track renewal exercise, targeting the replacement of 8,000 km of old and depleted lines on trunk routes at an estimated cost of Rs 10,000 crore and overhauling the entire signaling network to improve safety. The railways hope this will reduce the number of derailments by 50 per cent in the next two years. It will invite global tenders for the procurement of rails. "This length of 8,000 km would be taken starting next financial year and we would wrap up the work by the end of FY20. These are the high-density tracks for Indian Railways. We're working towards an accident-free network," a top government official said.
Mumbai Port Trust to build Rs 300-crore projects by June
The Mumbai Port Trust (MbPT) is planning to open up a slew of citizen-focused facilities being built at a cost of up to Rs 300 crore over the next six months, a top official has said."Many projects are in different stages of development and nearing completion. Works of around Rs 250-300 crore will be opened before the onset of the monsoon," Sanjay Bhatia, the chairman of one of the country's oldest ports, told PTI. It can be noted that from a cargo handling perspective, the port has ceded container traffic to the JNPT located across the harbour, and is now concentrating only on handling clean cargo. It, however, remains one of the biggest land owners in the cramped megapolis and is undertaking a slew of projects aimed at benefiting the citizens and also the travel, tourism and hospitality sectors.
Kolkata, Mumbai to be on faster rail link with Delhi
Adding steam to the Indian Railways’ plans for fast trains, the Ministry of Railways will approach the Cabinet to clear two semi-high-speed projects — New Delhi-Mumbai and New Delhi-Howrah — which may see investments of around Rs 180 billion. “The project has got the nod from the NITI Aayog. We are planning to approach the Cabinet on this soon. While the investment for the New Delhi-Mumbai route (including Vadodara-Ahmedabad) will be around Rs 110 billion, the New Delhi-Howrah route (including Kanpur-Lucknow) may be about Rs 70 billion,” said an official close to the development.
Railways set to start Rs 10,000-crore track renewal exercise to replace 8,000 km of lines
Indian Railways will soon start its largest track renewal exercise, targeting the replacement of 8,000 km of old and depleted lines on trunk routes at an estimated cost of Rs 10,000 crore and overhauling the entire signaling network to improve safety. The railways hopes this will reduce the number of derailments by 50 per cent in the next two years. It will invite global tenders for the procurement of rails. "This length of 8,000 km would be taken starting next financial year and we would wrap up the work by the end of FY20. These are the high-density tracks for Indian Railways. We're working towards an accident-free network," a top government official said.
Railways revised min qualification for track maintenance staff to deal with over qualified recruits
The railway ministry has conceded it has revised the minimum qualification required to apply for the job of a track maintainer because recent recruits for the position were highly qualified and showed reluctance to work. The minimum education qualification for the position was Class VIII, which was later increased to Class X. In July, the minimum qualification required was again revised to make it mandatory for applicants to have Industrial Training Institute certification.
Railways revise station categories to improve services
In a bid to provide better passenger services and amenities at railway stations across the country, the Railways on Thursday said that it has revised categories of various stations. The major policy decision was taken with a view to make it more practical and rational, the Ministry of Railways said in a statement. The step comes after Railways and Coal Minister Piyush Goyal directed the re-categorisation taking into account "earnings, passenger footfall, strategic importance" to provide more effective and focused services. "The criteria for categorisation of stations have now been revised to include footfalls at the station. The stations have been clubbed into three groups -- non-suburban (NS), suburban (S) and Halt (H)," the statement said.
Railways not planning to increase fares
The Indian Railways does not have any proposal to increase fares, the government informed Parliament on Wednesday. In a written reply in Rajya Sabha, Minister of State of Railways Rajen Gohain said the national transporter has seen an increase in passenger traffic of 0.68 per cent and a spike of 0.99 per cent between Delhi and Mumbai during April- November 2017 as compared to the corresponding period last year. To queries on passenger traffic, special trains and their fares, he said railways run these trains during peak seasons, festivals, special events for clearance of extra rush of passengers keeping in view the pattern of traffic, commercial justification, operational feasibility and availability of resources.
Railways to raise speed on Delhi-Howrah, Delhi-Mumbai routes to 200 kmph
The government on Wednesday said the Indian Railways plans to develop two speed raising projects of 3,000 km on Delhi-Mumbai and Delhi-Howrah routes at an estimated cost of Rs 18,000 crore. The proposed speed under these projects will be 200 kmph. Minister of State for Railways Rajen Gohain, in a written reply to a question in the Lok Sabha, said: "Two speed raising projects have been included in Pink Book 2017-18. The projects cover Delhi-Mumbai and Delhi-Howrah routes." He said the 1,483 km New Delhi-Mumbai (via Vadodara-Ahmedabad) route has an estimated cost of Rs 11,189 crore, and passes through seven States -- Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Haryana, Uttar Pradesh and Delhi.
Rail station development plan to get a makeover
The Ministry of Railways is set to approach the Cabinet in January to overhaul the Rs 1-lakh-crore station redevelopment plan that would increase the lease period for a developer to 99 years. The move, which would give the real estate sector a boost, would also give more financial independence to Indian Railway Stations Development Corporation (IRSDC) and the Rail Land Development Authority (RLDA), including powers to raise money from the markets for station redevelopment. “The ministry is floating a Cabinet note for inter-ministerial consultation to take the opinion of the finance and law ministries. We expect the policy to be cleared by the second half of January,” said a source close to the development. The government had gone ahead with the decision to overhaul the station redevelopment policy despite lukewarm response from industry for a tender floated for 23 stations. Industry majors such as the Tata group, Shapoorji Pallonji group, GMR, the Essel group and L&T had raised their concerns over the terms of the policy with Railway Minister Piyush Goyal in October.
Train-20: Aluminium-bodied trainsets to run on Rajdhani routes
In a first, the Railways will soon roll out 15 aluminium-bodied trainsets A - called Train-20 -- on its prestigious Rajdhani routes that will run faster and boast of improved passenger comforts. The aluminium trainsets A- or trains like the Metro or EMUs that do not have locomotives hauling them -- will not only be lightweight and energy-efficient, they will run at 160 kmph and have an automatic door system. They will have both seating and sleeper berths. The aluminium trainsets, estimated to cost Rs 2,500 crore, will start rolling out of the Railways' Integrated Coach Factory (ICF) near Chennai by 2020.
Konkan Railway, IIT Bombay tie-up to strengthen tunnel technology institute
The Konkan Railway has signed an MoU with the Indian Institute of Technology-Bombay (IIT-B) to make its George Fernandes Institute of Tunnel Technology in Goa a world-class centre of knowledge in tunnel and underground structure technologies. Konkan Railway Corporation Limited (KRCL) Chairman and Managing Director Sanjay Gupta and IIT-B Director Prof D V Khakhar signed the Memorandum of Understanding (MoU) at the premier engineering institution here yesterday. Under the MoU, IIT-B will offer technical support to the Konkan Railway to strengthen the George Fernandes Institute of Tunnel Technology (GFITT) at Madgaon in Goa, a release issued by KRCL said.
Bio-toilets: Call for all-round improvement
Taking into consideration the complaints regarding bio-toilets installed in trains, the CAG has called for the standardisation of design and addressal of issues of quality and quantity by private firms.This was stated in its report on bio-toilets in passenger coaches in Indian Railways, which was tabled in Parliament on Tuesday. Talking about the adoption of bio-toilets, CAG has stated that almost 2-lakh defects were noticed during 2016-17.
Railways plans to make all stations 100% LED lit by March-end
In an eco-friendly measure to cut power consumption, the Indian Railways on said it planned to make all stations cent per cent LED lit by March 31, 2018. The railways said it was actively working to provide 100 per cent LED lighting for energy needs in railway staff colonies, stations and platforms. "Ministry of Railways has decided to make all railway stations 100 per cent LED lit by the end of current financial year by March 31, 2018. It is a huge initiative to provide energy efficient lighting which will eventually greatly help in the conservation of environment as well," it said in a statement. LED or light-emitting diode bulbs are more energy efficient and have a longer lifespan than traditional lamps.
Railways nod for Rs 12,000-cr upgrade of mishap-prevention system
The Indian Railways has cleared a Rs 12,000-crore proposal to equip electric locomotives with the latest European train protection system. At its meeting on December 15, the Railway Board cleared the proposal to equip 6,000 electric locos with European Train Control System (ETCS) Level-II to help drivers - or pilots -- to prevent rail mishaps, a senior Railway Ministry official told IANS. Besides, the Board also decided to install the ETCS Level-II system on the entire 9,054 km-long Golden Quadrilateral route connecting the four metros to make it a fully accident-free corridor. The entire project to ensure ETCS Level-II compliance is expected to cost around Rs 12,000 crore.
SHIPPING
Centre’s plans to build LNG ships go up in smoke
The government is abandoning a four-year effort to build LNG ships locally after GAIL (India) Ltd — the state-run natural gas firm which was central to the plan — said it no longer needed to hire some nine new sophisticated tankers for as much as 19 years in view of a potential change in the sourcing of natural gas purchased from the US. GAIL told a high-level review meeting called by the government in December that it has swapped small quantities and was in the process of swapping larger quantities of “costly” LNG purchased from the US suppliers with other sellers. Under this arrangement, GAIL would sell a large portion of the US LNG to buyers who would be responsible for shipping the cargo. In turn, GAIL would buy similar quantities from other suppliers such as Qatar who will take care of transporting the cargo. The swap deals would free GAIL from making transportation arrangements.
India to have 10,000 seaplanes; e-highways on anvil: Nitin Gadkari
Clear water bodies dotted with 10,000 seaplanes, 'floating cities' in the form of ocean cruises and electric vehicles zipping on dedicated highway lanes -- that's the future as envisioned by Transport Minister Nitin Gadkari. For the 'go-getter' minister at the helm of affairs to overhaul the country's infrastructure, India has the potential to realise all this and much more. "I have been talking about seaplanes. If it starts, in India we have the potential of starting 10,000 seaplanes. We have 3 to 4 lakh ponds in India, plenty of dams, 2,000 river ports, 200 small ports and 12 major ports. It will cost less," Road Transport, Highways and Shipping Minister Gadkari told PTI. The minster said he has asked his civil aviation counterpart Ashok Gajapathi Raju to explore a regulatory regime for single-engine seaplanes to facilitate introduction of such planes in the country as early as possible.
Jawaharlal Nehru Port Trust handles 3.9 lakh TEUs of container traffic in November
Jawaharlal Nehru Port Trust (JNPT) handled 3.9 lakh twenty-foot equivalent units (TEUs) of container traffic in November, the government has said. JNPT is one of the top 12 major ports in the country. "Of the four terminals at JNPT, JNPCT handled 1.18 lakh TEUs, APM Terminal's total stood at 1.66 lakh TEUs, DP World comprising NSICT and NSIGT) together handled 1.06 lakh TEUs in the month of November 2017," Ministry of Shipping said in a statement.
Mumbai Port Trust to build Rs 300-crore projects by June
The Mumbai Port Trust (MbPT) is planning to open up a slew of citizen-focused facilities being built at a cost of up to Rs 300 crore over the next six months, a top official has said. "Many projects are in different stages of development and nearing completion. Works of around Rs 250-300 crore will be opened before the onset of the monsoon," Sanjay Bhatia, the chairman of one of the country's oldest ports, told PTI.
Nitin Gadkari flags off cargo movement on Brahmaputra
In a major boost to the inland waterway transport system in the North East, Union Shipping Minister Nitin Gadkari today flagged off cargo movement on the Pandu-Dhubri route along the Brahmaputra. The Union minister also said that five bridges will be constructed on the river to ease transportation. The bridges will connect Jorhat with Nematighat, Disangmukh with Tekeliphuta, Louit with Khablu, Numaligarh with Gohpur and North Guwahati with Guwahati, he explained at the flagging-off ceremony at Majuli Island here.
CIVIL AVIATION
Maharashtra protests: Airlines waive cancellation charges
Domestic carriers, including the government-owned Air India, have waived charges for ticket cancellations and no-show due to the ongoing unrest in parts of Maharashtra. Air India said it will not charge any fee for cancellation of tickets or rescheduling of a journey to/from Mumbai on January 2 and 3. Air India has decided to waive ticket cancellation/ rescheduling charges for its flights to and from Mumbai for today and tomorrow, a senior airline official said.
No proposal to reconsider Air India privatisation: Government
There is no proposal to reconsider the decision to privatise Air India, which has an outstanding debt of Rs 51,890 crore, the government informed Parliament today. To revive the loss-making national carrier, the government is working on the modalities for its strategic disinvestment. To a question in the Lok Sabha on whether the government proposes to reconsider its decision to sell out the debt- ridden Air India and its auxiliary companies, Minister of State for Civil Aviation Jayant Sinha replied in the negative. The total outstanding loans of Air India as on September 30, 2017 stand at Rs 51,890 crore as per provisional figures cited by Sinha. Of this, aircraft loans account for Rs 18,364 crore and working capital loans are at Rs 33,526 crore.
Bengaluru Airport strengthens management after change in ownership
With Prem Watsa’s Fairfax assuming control of the Bengaluru International Airport Limited (BIAL), the airport has geared up to strengthen its management structure by bringing in talents from across the world. Sources said that the new owners have decided to bring in people who had experience in running airports. “Many of our former executives have come back as the new owners are strengthening the management looking at the massive expansion project,” said a BIAL executive. In June, the erstwhile owner GVK group exited the project selling its remaining stake to Fairfax. Among the many who have joined the airline’s core management team is Javed Malik as the Chief Operating Officer.
Commercial flight nod for made-in-India plane
You may soon be flying regional routes on board a made-in-India aircraft. The Directorate General of Civil Aviation (DGCA) has allowed Hindustan Aeronautics Ltd (HAL)-manufactured Dornier 228 to be used for civilian flights. The 19-seater aircraft has, till now, been used by defence forces and is the first plane to be made in the country for commercial flights. The DGCA has given type certification to this aircraft and also given certificate of airworthiness to HAL's Dornier 228. Now, HAL can sell this plane to airlines in India and it can be used by them for regional flights under the Modi's government's ambitious UDAN scheme, a senior aviation official said. "Some special incentives may be given to operators using this plane. Apart from airlines in India," the official added.
Indian carriers to induct over 900 planes in coming years
Indian airlines are likely to induct more than 900 aircraft in the coming years, with IndiGo alone expected to add 448 planes, according to official data. India is one of the fastest growing aviation markets in the world and most airlines have ambitious expansion plans, especially to tap the potential on regional routes. As per data available with the civil aviation ministry, budget airlines IndiGo, SpiceJet, GoAir and AirAsia are set to significantly expand their respective fleet sizes. Along with other carriers, the total number of aircraft to be inducted by the domestic players would be more than 900. With an existing fleet of 150 planes, IndiGo is readying to add another 448 aircraft -- 399 A320s and 49 ATRs -- in the next seven to eight years. Competitor SpiceJet too is in the process of expanding its current fleet of 57 aircraft. The no-frills airline would be adding 107 B737-800s and 50 Bombardier Q400s during the 2018-2023 period.
Airlines reported 1000 technical snags in 2017, half of them by Air India: Government
Domestic carriers reported a total of 1,000 technical snags in 2017 with the Air India accounting for more than half of the glitches, according to data shared by the government in Parliament today. The divestment-bound national carrier witnessed 581 technical glitches across its fleet of Airbus and Boeing aircraft. It was followed by the SpiceJet with 259 snags reported across its fleet of Boeing and the smaller Bombardier Q400 aircraft. The Jet Airways saw 80 technical problems in its fleet of Boeings, Airbuses and ATR planes. Market leader IndiGo reported 37 cases of malfunctions in its planes.
In-principle approval for 19 greenfield airports given: Raju
The government has given "in- principle" approval for 19 greenfield airports, of which some would be developed through Public Private Partnership (PPP), the Lok Sabha was informed today. Civil Aviation Minister Ashok Gajapathi Raju said the country's civil aviation sector was growing leaps and bounds but the safety of air passengers will never be compromised. Emphasising that air travel is growing leaps and bounds, Raju said during Question Hour that the number of aircraft in the country was around 548 compared to about 395 in 2014. Since the government came to power in 2014, around 50 aircraft is being added every year, he said.
Air traffic growth seen plunging 800bps on infrastructure, fuel worries
Warning that twin headwinds of creaking infrastructure at major airports and rising fuel prices will cull passenger growth by an average 800 bps in the next five years, a report has said domestic air traffic growth has peaked out for the medium-term. The domestic air traffic market has been the fastest in the world since the past two years and has crossed the 100 -million-market in the first 11 months of the year, with November traffic clocking 10.6 million, with an average growth of 17 per cent in the year. “Despite a raft of policy facilitations, domestic airlines are flying into two major headwinds–crippling infrastructure at major airports, and an uptick in fuel prices–which could mean growth may have peaked out for the medium-term,” Crisil warned today. The agency sees “growth decelerating by 800 basis points (bps) to 13-15 per cent annually in the next five fiscals through 2022, compared with a blistering 22 per cent seen in fiscals 2016 and 2017. This fiscal, its seen slowing by 300-500 bps to 17-19 per cent.”
Northeast airports facelift: Government may invest Rs 8,000 crore more
The government has initiated a process to build airports and upgrade existing facilities including airstrips used by the air force in the Northeast to improve connectivity in a region which is represented poorly on the aviation map. The first phase of this has already started with the state-run Airports Authority of India currently carrying out work under a Rs 2,500-crore project. The government is also discussing a plan to invest anotherRs 8,000 crore in upgrading more airports. "We are already in the process of upgrading various airports in the Northeast, which is likely to reach completion by 2019-20," AAI chairman Guruprasad Mohapatra told ET. "We are also planning a second phase of airport upgrade programme for the north-eastern region."
After DGCA whip, airlines junk flat Rs 3,000 cancellation fee
Cancellation charges for 'cheap' domestic air tickets will no longer be a flat Rs 3,000. Indian airlines say their domestic cancellation charges will be "Rs 3,000 or base fare plus fuel surcharge per passenger, whichever is lower." This will provide relief to those who manage to buy cheap air tickets, mostly by buying in advance, but ended up losing a lot of money while cancelling them if unable to travel for some reason. However, domestic travellers, whose base fare and fuel surcharges combined is more than Rs 3,000, will continue paying that as cancellation fee.
Civil aviation ministry may face funding crunch for UDAN
With more routes set to be operational under UDAN, the civil aviation ministry is likely to face paucity of funds in providing viability gap funding to participating airlines, according to a senior official. To connect unserved and under-served aerodromes as well as make flying more affordable, the ministry has launched Ude Desh ka Aam Naagrik (UDAN) and as many as 128 routes connecting 70 airports were awarded in the first round of bidding. A total of 141 initial proposals have been received from various players in the second round of bidding, the results of which are expected to be announced this month. As participating airlines are extended Viability Gap Funding (VGF), the ministry feels that amount that will be available towards it might not be sufficient once more players start operating UDAN flights.
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Presented By Neerja Singh
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(Civil Aviation, Railways, Ports and Shipping, Roads and Highways, Real Estate, Urban Development and Smart Cities)
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