MP Cabinet Okays Air Links between Four Major Cities
Bhopal — The Madhya Pradesh cabinet on Wednesday okayed a proposal to link the State’s major cities through an air service, operated by private players. The service will link Indore, Bhopal, Jabalpur, Gwalior and Satna during the first phase.
A policy to the effect has also been endorsed. The cabinet also decided to constitute a separate Aviation Cell at the Madhya Pradesh State Tourism Development Corporation, to look after arrangements for seat reservations, compensate VAT for aircraft fuel among other things.
As per the decision, an open tender will be floated to identify private operators for the service. The process will be transparent and competitive. The routes identified for the service include Indore-Bhopal-Jabalpur-Satna-Jabalpur- Bhopal-Indore, Indore-Bhopal- Gwalior-Satna- Gwalior-Bhopal- Indore and Gwalior-Jabalpur- Gwalior.
The private operators will be able to fly minimum 9-seater planes and will be free to fix fares in every sector.
The operators will have to reserve some seats for the use of the state government. Officers of the state government will travel on these seats. If any seat reserved for the government officers in any sector remains vacant, the operator will be free to sell the seat in the market.
In case the operator manages to sell the ticket in the open market, the state government will not be liable to pay the service operator. But if any such seat remains vacant, then the government will pay the operator as per a predetermined tariff.
In every route, some seats will be underwritten for the government. The agreement will remain in force for three years after which no seat will be underwritten.
Seats will not be reserved for the government if the operator provides air service from a city in the state to a city outside Madhya Pradesh. But the state government will compensate for Value Added Tax (VAT) on the fuel spent on such flights. This arrangement will remain in force for five years.
The private operator will make payments of fees related to Union Civil Aviation Ministry, Director General Civil Aviation and Airport Authority of India and will be liable to follow the rules and regulations set by them. The operator will have to make payments for fire brigade, ambulance etc if he uses airstrips owned by the state government while security will be provided by the government.
The state government will make weekly payments to the operators against underwritten seats.
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