Maharashtra Approves One-Year Viability Gap Funding For Solapur–Pune–Mumbai Air Route Ahead Of UDAN Rollout

The Maharashtra Cabinet on Tuesday (12 August) approved the provision of 100 per cent Viability Gap Funding (VGF) per seat for the Solapur–Pune–Mumbai route for a period of one year, an official press statement said.

The decision was taken at a meeting chaired by Chief Minister Devendra Fadnavis.

The funding, set at Rs 3,240 per seat, will be extended to Star Air for its operations on the Solapur–Mumbai and Solapur–Pune routes.

A budgetary provision of Rs 17.97 crore has been earmarked to support the initiative during the interim period before the central government’s UDAN (Ude Desh ka Aam Naagrik) scheme comes into effect for Solapur Airport.

Once the UDAN scheme is implemented for this airport, the state government’s funding will be discontinued, and as per the central government’s UDAN norms, 20 per cent viability gap funding will be provided.

Officials have emphasised that the one-year full VGF plan is a stop-gap measure to ensure affordable fares from the outset and encourage passenger uptake, thereby improving the route’s commercial viability.

The scheme is also expected to stimulate economic activity by improving business and tourism connectivity between Solapur, Pune, and Mumbai.

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