Apparently to promote tourism, the state government has readied a plan to develop its own domestic air operations. The state cabinet today decided to offer freebies, including '8 crore seat occupancy for its officials and cent percent compensation on value added tax on ATF (Aviation Trubine Fuel) and security cover to private airliner that can establish air links between prominent cities like Indore, Bhopal, Gwalior, Jabalpur, Khajuraho and Satna.
State cabinet today has given its nod to the plan and tenders to invite bids for the project will be floated soon.
“The private airliner will be allowed to establish air links between Indore, Bhopal, Satna, Jabalpur, Gwalior and Khajuraho for ten-seater aircraft. The government will buy four seats on regular basis for its officials and will compensate to the private career if these reserved seats remain unwritten by government. The private airliner will however be allowed to sale those seats in open market but will not be reimbursed for the same. The annual expenses are estimated to touch '8 crore per career on state exchequer,” said a government spokesperson.
The department of finance had raised objections to this proposal of the department of tourism headed by Iqbal Singh Bains who is also secretary to the state chief minister Shivraj Singh Chouhan.
The state commercial department has also agreed to offer compensation on value added tax at 4 per cent on turbo prop engine jets and 28.75 per cent on other planes.
“There is a plan,” the spokesperson said, “to deploy security at airports to the airline operator but they will have to pay nominal fee of Rs 2500 per landing for ambulance and fire brigade.” A committee has been constituted to complete the process of floating tenders.