UDAN: Viability gap funding to get 3-year exemption from GST
Jan 19, 6:48 AM
The GST Council has decided to provide a three-year GST exemption for viability gap funding (VGF) given under the regional air connectivity scheme.
The scheme, also known as UDAN (Ude Desh ka Aam Naagrik) seeks to connect unserved and under-served airports as well as make flying more affordable.
The participating airlines are eligible for VGF subject to certain conditions.
The civil aviation ministry contributes 80 per cent of the VGF amount, while the remaining comes from the state governments concerned and in the case of north-eastern states and Union territories, the sharing ratio is 90:10. A total of 128 routes connecting 70 airports were awarded in the first round of bidding under the scheme.