Karnataka is set to present a new policy aimed at promoting the growth of civil aviation to the State Cabinet for approval. The policy includes provisions for financial assistance and Viability Gap Funding (VGF) for airports.
The suspension of flight services at Shivamogga Airport has been linked to shortcomings in the Union Government’s UDAN-2 policy, according to Industries and Infrastructure Development Minister M.B. Patil.
Meanwhile, Karnataka spent ₹1,000 crore on developing Kalaburagi Airport but received no return from the Centre. The airport was later restored with 80% funding from KKRDB and 20% from the State Government.
The State Government is managing airports at Shivamogga, Raichur and Vijayapura itself. Flight operations at 17 airports across the country have been suspended due to policy issues. The State proposed extending the UDAN scheme from three to five years, but the Centre did not accept the proposal or agree to share expenditure equally.
The Centre has handed over Mangaluru Airport to Adani Group and is moving towards privatising Hubballi Airport.
