A Tripartite Memorandum of Understanding (MoU) was signed today in New Delhi among the Government of Himachal Pradesh, the Union Ministry of Civil Aviation, and the Airports Authority of India (AAI). Executed under the modified Regional Connectivity Scheme-UDAN, the pact aims to upgrade aviation infrastructure and expand flight networks across the state.
Tourism and Civil Aviation Secretary Sandeep Kumar shared that the agreement was signed in the presence of Union Civil Aviation Minister Kinjarapu Rammohan Naidu and Minister of State Murlidhar Mohol.
Valid for 10 years, the agreement sets a framework for managing existing and upcoming UDAN routes and developing key aviation facilities. Under the standard cost-sharing framework, Viability Gap Funding (VGF) is split 80:20 between the Centre and the state government.
However, citing the high operational costs and challenging mountain terrain, CM Sukhu recently appealed to the Union Minister to adjust the funding ratio to 90:10, requesting 90% support from the Central Government.
Better aerial connectivity is expected to spur local tourism, streamline travel for business and leisure visitors, and improve accessibility for remote mountain regions.
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