Bhubaneswar, January 31:The Odisha Cabinet has approved a proposal to extend the State’s Viability Gap Funding (VGF) support for key international air routes from Bhubaneswar, with a focus on the Bhubaneswar-Dubai and Bhubaneswar-Singapore connections. This move aims to enhance global connectivity, support the Odia diaspora, and foster economic growth through the aviation sector.

The proposal specifically addresses the ongoing international operations by Ind'Go, covering the Bhubaneswar-Dubai and Bhubaneswar-Singapore routes. These routes were initially supported by the State to bridge early commercial viability gaps and have now been deemed essential for maintaining sustained international connectivity.

Key Highlights:

• Bhubaneswar—Dubai Route: VGF support will be extended for an additional six months (from 27 October 2025 to 29 March 2026) under the New Destination Policy. This extension follows a sharp drop in passenger load after the withdrawal of prior support, raising concerns about the potential discontinuation of the route.
• Bhubaneswar—Singapore Route: VGF support, with updated cost indexation, will also continue for another six months to ensure the route's viability. Despite consistent challenges related to low passenger load and high operating costs, sustaining the Singapore connection is seen as crucial for Odisha’s global engagement.
• Discontinuation of VGF Support: VGF support will cease for the Bhubaneswar—Bangkok route as of 27 October 2025, and for the Bhubaneswar—Abu Dhabi route starting 11 December 2025. This rationalisation aims to optimise resources and focus on stabilising high-priority international routes.

Strategic Rationale: Dubai is a key hub for Odisha’s migrant workforce, and direct connectivity is vital to mitigate the reliance on indirect travel through other major metros. Singapore remains an important partner for Odisha in terms of trade, investment, and institutional cooperation. Continued international operations are critical for securing airport slots, stabilising existing routes, and furthering Odisha’s vision to become a regional aviation hub under the B-MAAN (Building and Maintaining Aviation Assets and Networks) scheme.

Financial Implication: The total VGF support for the two routes over the next six months is estimated at approximately ₹26.87 crore. The funding will be sourced from the B-MAAN scheme’s approved budget. Future decisions regarding the continuation or modification of international routes will be made by the Chief Minister, following periodic performance reviews.