U'khand govt nixes company's contract for low-cost flights

The Uttarakhand government has terminated the contract of a private aviation company to operate low-cost flights in the state for not following the terms of the agreement.
The decision evoked a sharp reaction from former chief minister Harish Rawat who said it went against the interests of the state causing a loss of Rs 18 crore to the exchequer.
Uttarakhand Civil Aviation Development Authority headed by Chief Secretary S Ramaswami on Tuesday terminated the contract of India Flysafe Aviation Ltd for operating low-cost flight operations between Dehradun and Pithoragarh on charges of not following terms of the contract.
As per the terms of the contract, the firm was also supposed to operate subsidised flights to Chardham during the yatra season for three years.

Reacting sharply to the termination of the contract, former CM Rawat during whose tenure the contract was awarded to the firm said it was not in the interest of the Himalayan state.
Claiming that norms were strictly followed in awarding the contract to the firm, he said it was roped in to operate low-cost flights keeping in mind the interests of the people of the state.

"By terminating the contract, the state government has shown it doesn't give a damn about the people of the state who have been terribly inconvenienced," Rawat told reporters here and also appealed to Chief Minister Trivendra Singh Rawat to reconsider the decision.

The former CM also said termination of the contract had caused a loss of Rs 18 crore to the state exchequer.
Rubbishing the charges levelled by the former chief minister, state BJP president Ajay Bhatt said undue haste was shown in awarding the contract to the company by the previous government.
"Norms were violated to favour the company hence it's contract has been terminated. Now proper procedures are being followed," he said.