Bhubaneswar: Seeking to position Odisha as eastern India’s aviation gateway, the state govt has unveiled a draft civil aviation policy that aims to double the number of operational airports from five to 10 and passenger traffic from around five million to 10 million by 2029. The policy also proposes heliports and aircraft maintenance facilities, both currently absent in the state’s aviation ecosystem.The draft policy targets commissioning of the proposed Shree Jagannath International Airport in Puri by Dec 2029, and offers a host of incentives to attract airlines and aviation investors. The govt has also proposed a greenfield airport in Paradip, and runway expansion projects in Jharsuguda, Rourkela, Jeypore and Utkela airports.
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At Paradip, a pre-feasibility study is proposed by Oct 2026, followed by preparation of a detailed project report (DPR) by March 2027.Under Odisha Civil Aviation Policy 2026, which will replace the 2022 policy, the state, which has none, plans to operationalise four heliports by 2029, and establish at least two maintenance, repair and overhaul (MRO) facilities. Cargo handling is projected to increase from 9,086 metric tonnes to 15,000 metric tonnes during the period.As part of its long-term vision, the govt plans to develop 16 airports and airstrips, and 30 heliports across the state. The heliport facilities have been proposed at AIIMS Bhubaneswar and the medical colleges in Sambalpur, Cuttack and Berhampur to support medical evacuation services.A key focus of the policy is the creation of new aviation infrastructure. To improve connectivity, the state proposes a hub-and-spoke model with Bhubaneswar as the primary hub and Jharsuguda, Jeypore, Puri, Paradip and Rourkela as secondary hubs. New domestic links are planned to Ahmedabad, Chandigarh, Jaipur, Goa, Indore, Lucknow and Varanasi, while international connectivity will be expanded in phases to destinations such as Bangkok, Singapore, Kuala Lumpur, Dubai, Abu Dhabi, Muscat and Hong Kong.The draft policy promises enhanced financial incentives for airlines under the state’s New Destination Policy. Airlines launching new domestic routes can receive viability gap funding (VGF) of up to Rs 7.5 lakh per round trip, while international operators may get up to Rs 15 lakh per round trip on long-haul routes. Additional support includes marketing assistance of up to Rs 1 crore per international route annually for two years, and reimbursement or waiver of state-level taxes and charges for the first three years of operations.The govt has also proposed concessions for airport, heliport and aviation training developers, including land at concessional rates, capital subsidies, exemption from stamp duty, electricity duty and property tax, besides single-window clearances for aviation projects.The draft policy proposes longer financial support for airlines introducing new routes. Under existing norms, VGF is provided for six months, extendable by another six months. The new policy proposes support covering 75% of costs during a third six-month extension and 50% during a fourth six-month extension.The 2026 draft aligns aviation growth with Odisha Vision 2036 and 2047, aiming at seamless domestic and international connectivity, world-class infrastructure, a skilled workforce and sustainable growth.
