The State Cabinet on Tuesday approved providing Viability Gap Funding (VGF) on a per-seat basis for the Solapur–Pune–Mumbai air route for one year, modeled on the Centre’s UDAN (Regional Connectivity Scheme).
The central government’s UDAN scheme aims to make air travel affordable for common citizens and will soon be implemented for Solapur Airport as well. Until the scheme comes into effect, the state government will provide 100% VGF at a rate of ₹3,240 per seat for one year. This move is expected to reduce airfares on the Solapur–Pune–Mumbai route.
Under this decision, Star Air will receive per-seat VGF for operating flights on the Solapur–Mumbai and Solapur–Pune routes. For this purpose, a provision of ₹17.97 crore has been made.
Once the UDAN scheme is implemented for Solapur Airport, the state-funded VGF will be discontinued, and instead, the state will provide 20% VGF as per the central government’s guidelines.
