Civil Aviation Policy 2022


Odisha is geographically located on the eastern coast of India and the average flying time from the State capital (Bhubaneswar) to major cities of the country is about 2.5 hrs. The Biju Patnaik International (BPI) Airport, Bhubaneswar (1962) is the only international airport in the State in addition to the Veer Surendra Sai (VSS) Airport, Jharsuguda (2017), a domestic airport; both owned and operated by the Airport Authority of India (AAI). In addition, two (02) airports are at Rourkela (2B licensed) and Jeypore (2B VFR licensed) in the districts of Sundargarh and Koraput respectively.

The Ministry of Civil Aviation (MoCA), Govt. of India is the promoter for the sectoral growth in India and formulates policies and guidelines for regional growth in civil aviation. In 2016, the MoCA has formulated National Civil Aviation Policy (NCAP), 2016 with an aspirational vision for a decade. Nonetheless, a regional connectivity scheme namely UDAN (Ude Desh ka Aam Naagrik) was further conceived by the Ministry which has salient features such as Govt. support (limited), cooperative federalism, capped airfares and the selection of operators through a transparent and competitive bidding. Currently, Odisha has seven (07) RCS routes.

Currently, Odisha has 19 airports/airstrips of which 12 are state-owned. In addition, there are as many as 13 heliports in the State. The Biju Patnaik International (BPI) Airport, Bhubaneswar is licensed for the operation of intra-state, inter-state and international flights while the Veer Surendra Sai (VSS) Airport, Jharsuguda and Jeypore Airport, Koraput are providing intra-state and inter-state flights.


To harness faster augmentation of the aviation infrastructure in the State with an investor-friendly ecosystem to improve regional air connectivity, create sectoral skilled resource pool, and maintenance, repair, and overhaul (MRO) facilities in the State over a span of five (05) years.


Govt. of Odisha, through this policy, envisages promotion and growth of civil aviation sector in the State. The objectives have been set out in accordance with the NCAP 2016 are as follows:

Improve connectivity

  • To add at least three (03) potential airstrips namely Utkela (Kalahandi), Amarda (Mayurbhanj) and Rangeilunda (Ganjam) to "Functional Airports" category in the aviation map of the country to aid the potential of tourism by linking major tourist spots of the state with various domestic and international locations.
  • Establish at least two (02) cargo hubs in the state by end of the policy period.

Partnering with private operators

Create business environment that attracts Airline Operators to invest and monetise the untapped potential in the aviation sector and lead to balanced regional growth in the State through establishment of a single window system that would provide all the required facilities and assistance to promote the whole value chain in the sector.

Increase employment opportunities

  • Leasing out minimum two (02) nos. of state-owned airports/airstrips to the interested parties for occupational training in the sector.
  • Establishing one (01) MRO facility centre which would provide employment opportunities at the homeland of the individuals working in the same field but away from home.
  • Augment the capacity of the Government Aviation Training Institute (GATI) to produce skilled and licensed Pilots to meet the future needs.

The DoCA shall be the Nodal Agency for the development of aviation and related infrastructure in the State. The Nodal Agency may engage SMEs for expert advice and shall explore the following aspects in due consultation with the HPC and MoCA / AAI /DGCA.

  • Implementation of the policy measures
  • Proactive augmentation of airport capacity and allied infrastructure to handle an increasing volume of air traffic and to garner the maximum share of traffic in the region.
  • Facilitate multi-modal linkages for smooth movement of passengers as well as commodities.
  • Facilitate a market orientation to the present structure, bridge the resource gap and encourage greater efficiency and enterprise in the operation of airports, through the introduction of private capital and management skills.
  • Maintain a balance between the need for economic viability and the objective of equitable regional dispersal of infrastructural facilities.
  • Encourage trade, tourism and overall growth by liaising with respective agencies.
  • Explore options and engage a third party agency for marketing or publicity of various incentives offered under the Policy.
  • The State Government is committed to simplify the processes and expedite project approvals
  • Single window clearance system/mechanism is laid down at the district and state level to provide clearance to projects related to Civil Aviation policy
  • The State Government had created the Directorate of Civil Aviation, as the nodal implementation organisation to carry out all Civil Aviation policy related activities
  • Publicity support for RCS and non-RCS routes will be provided by the State Government, through Tourism Department.

RCS Airports

Incentive Name Incentive Particulars
VAT or ATF to Airline Operator 1% for all RCS flights (as per the Finance Department Notification vide 24567/F, dated: 22.8.2017)
VGF to Airline Operator @20% as state share of the 50% seats of RCS aircrafts shall be borne by the state for three (03) years and subject to review after 3 years (as per NCAP 2016)
Seat underwriting to Airline Operator To be decided by the State Government/ HPC based on routes and operational profitability to the Operator
Office space to Airline Operator Up to 100 M2 on free-lease basis
Physical security and fire services to Airline Operator To be provisioned by the State Government for free
Electricity / Water supplies to Airline Operator To be provided at substantially concessional rates by the State Government
Subsidy on license fees for Aviation Fuelling Station to Oil Marketing Companies Up to 1,600 M2@Re.1/- per M2
Ambulance services to Airline Operator To be provisioned by the State Government for free

Non-RCS Airports

The State Government is keen to prepare a framework for use/develop and maintenance of non-RCS airports by the Commerce & Transport (Transport) Department in consultation with the State Departments of Law, Finance, Home and Works under the guidance of the AAI / DGCA / MoCA, GoI.

Additional support may also be offered by the State Government for a period to be decided by the HPC, with private participation or in PPP model, which shall be as follows:

  • Suitable sharing of operational cost, as mutually agreed to.
  • Operation and maintenance as mutually agreed to.
  • Runway maintenance and re-carpeting full length on need basis.
  • Airport boundary wall construction /maintenance.
  • Construction/maintenance of VIP lounges/ Terminals.
  • Free electricity to the Airport and terminal buildings
  • Free water to the Airport and terminal buildings
  • Infrastructure for connectivity with city and other important areas
  • Construction and maintenance of runway/taxiway/apron as needed.
  • Promotion.
  • Road and Transportation.
  • No Landing and Parking charges on State owned Airports.