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Maharashtra govt signs pact with Telangana for regional connectivity

These includes services as free security and fire brigade services and levy only 1% VAT on jet fuel sold at RCS airports

Maharashtra Chief Minister Devendra Fadnavis and Telangana CM K Chandrasekhar Rao during signing of an MoU on construction of irrigation projects in Mumbai

Maharashtra Chief Minister Devendra Fadnavis and Telangana CM K Chandrasekhar Rao during signing of an MoU on construction of irrigation projects in Mumbai

Aneesh PhadnisPTI Mumbai

Maharashtra has become the first state to sign up for the regional connectivity scheme (RCS) which seeks to revive unused airstrips and connect tier II and III towns with flights.

The state government on Tuesday signed a memorandum of understanding with the civil aviation ministry and the Airport Authority of India agreeing to provide all the concessions under the scheme. These includes services as free security and fire brigade services and levy only one per cent VAT on jet fuel sold at RCS airports.

Under the scheme, which is part of the ambitious civil aviation policy announced on June 15, the government has decided to cap airfares at Rs 2,500 for one-hour flights that connects an unserved airport. A regional connectivity fund will be set up by the Centre which will provide 80 per cent of the subsidy while the rest 20 per cent will come from the states.

 

Earlier in the day civil aviation minister Ashok Gajapathi Raju said as part of the RCS, the Centre and the State would develop Airports Authority of India (AAI)-owned existing air strips in Solapur, Kolhapur, Jalgaon, Gondia, Akola and Juhu. Besides, state government-owned ones in Nanded and Shirdi would be developed, he added.

When asked about the deadline for operationalising them, Raju said, "I dont set deadlines nor do I work under deadlines. But lets assume at the earliest."

"When we announced the RCS, we were speaking about a wish-list. This agreement is the first step to convert that wish-list into a work-list and then a reality," he said.

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First Published: Aug 23 2016 | 8:24 PM IST

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