Sri Vijaya Puram, Sept. 25: The Andaman and Nicobar Administration has signed a Memorandum of Understanding with the Ministry of Civil Aviation and the Airports Authority of India under RCS–UDAN 6.0, establishing a support framework for expanding affordable air connectivity across the islands through seaplanes and small fixed-wing aircraft.
The agreement, signed in Sri Vijaya Puram on September 22, is aimed at strengthening links between the islands while supporting access to tourism, trade, employment, healthcare and education, according to a press release issued by Lok Niwas.
Under the modified UDAN framework, airline operators will receive viability-gap funding (VGF) for up to five years. The funding structure provides for 90 per cent Central VGF, with the remaining 10 per cent contributed by the Union Territory Administration.
The arrangement also provides for Airports Authority of India support for the operation and maintenance of airports and water aerodromes. The UT Administration will levy 1 per cent VAT on Aviation Turbine Fuel (ATF), forming part of the measures accompanying the connectivity initiative.
The Administration will additionally provide support for firefighting, security, utilities and other essential infrastructure required under the initiative.
The MoU brings together financial support for operators, airport and water-aerodrome maintenance assistance and infrastructure support from the Union Territory Administration to facilitate the proposed regional connectivity services.
The Administration said the initiative would strengthen regional connectivity and create new opportunities for residents of the islands. It described the agreement as part of its efforts to advance a more connected and developed Andaman and Nicobar Islands.
The arrangement covers connectivity through both seaplanes and small fixed-wing aircraft, with the stated objective of making air travel between the islands more affordable while extending the potential benefits of improved connectivity to multiple sectors.
