The Memorandum of Understanding (MoU) was signed here in the presence of Civil Aviation Minister Ashok Gajapathi Raju and Telangana Minister for IT and industries K T Rama Rao in the national capital, an official announcement from the state government said.
The RCS a key component of the National Civil Aviation Policy would be in operation for a period of 10 years, envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.
The fare for a one hour journey of approximately 500 km on a fixed wing aircraft or for a 30 minute journey on a helicopter would now be capped at Rs 2,500, with proportionate pricing for routes of different lengths / duration, an official release had earlier said.
To reduce the cost of operations, the Central Government would be providing concessions in the form of reduced excise on VAT, service tax and flexibility of code sharing at the RCS airports. Similarly, the State governments would have to lower the VAT on ATF to 1 per cent or less, besides other concessions.
More From This Section
(REOPEN BCM16)
Later, Rama Rao, who also handles industries portfolio, met Union Industries Ministers Anant G Geete here and reiterated the need for Centre's intervention for revival of Cement Corporation of India (CCI) in Adilabad district of the state.
Rama Rao said the Telangana government will encourage the plant with all the facilities after its revival.
"The state government would encourage CCI just like it did for Ramagundam Fertilizer plant," he said.
"CCI is a plant with captive limestone quarry and 772 acres of space. It would also help provide livelihood for over 2,000 employees were affected by the shut down.