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Uttarakhand plans its own airline

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Shishir Prashant New Delhi/ Dehra Dun
Last Updated : Jun 14 2013 | 6:29 PM IST
To overcome the long and arduous distances in the hills and boost connectivity, the Uttarakhand government has chalked out a plan to start its own airline.
 
For this purpose, the government has roped in the Uttarakhand Infrastructure Project Company (UIPC) Pvt Ltd which would buy at least two planes for the proposed airline.
 
A total of Rs 34 crore is being estimated for running the airline with the government already sanctioning an outlay of Rs 14 crore. The rest of the amount would be contributed by Infrastructure Leasing and Finance Services (IL&FS), a joint partner with the government in the UIPC. "We are ready to invest Rs 14 crore in this project," confirmed Civil Aviation Secretary PC Sharma.
 
For the time being, the government is mulling two options "" capital model and revenue model. Either the UIPC buys the planes and hypothecates them in the name of the government, or the government would compensate the initial losses suffered by the company for running the airline.
 
There is the third option "" the government may rope in the Nepal-based Buddha Airlines. This airline would be asked to operate the two planes in Uttarakhand. "Our plan is to buy two small planes for the mountain airline," said Sharma.
 
Initially, the government is thinking of operating the services between Dehra Dun and Pant Nagar. Later, the service can be extended to areas like Pithoragarh, Chamoli and Uttarkashi where three airstrips already exist. The government is currently upgrading the Naini Saini airstrip in Pithoragarh.
 
Plans are afoot to upgrade Chinyalisaud airstrip in Uttarkashi and Gauchar in Chamoli district. "Once all these airstrips are upgraded, the airline will start full-fledged operations," said Sharma.
 
Significantly, experts believe the mountain airline will play a vital role in view of the new hill industrial policy announced by the government. Under this policy, the government is seeking investments in hotel, tourism, small-scale industries and other sectors in the hills.
 
But poor connectivity is the bane of development in the hills, experts said. "Once we are able to overcome the long distances through a new airline, we can hope to usher in a new beginning in the hills," commented a top government official.

 

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First Published: Jan 29 2008 | 12:00 AM IST

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