Bhubaneswar, January 31: The Odisha Cabinet has sanctioned an extension of the State’s Viability Gap Funding (VGF) support for international air routes originating from Bhubaneswar, specifically for the Bhubaneswar-Dubai and Bhubaneswar-Singapore services. This initiative is aimed at strengthening global connectivity, supporting the Odia diaspora, and driving economic growth through enhanced aviation services.

The proposal is focused on continuing the VGF support for Ind'Go’s ongoing international flights along the Bhubaneswar-Dubai and Bhubaneswar-Singapore routes. These routes, initially supported by the State to overcome early commercial viability challenges, have now been recognized as essential to maintaining consistent international connectivity.

Key Highlights:

• Bhubaneswar-Dubai Route:
  The VGF support will be extended for an additional six months, from October 27, 2025, to March 29, 2026, under the New Destination Policy. This extension comes after a significant decline in passenger numbers following the withdrawal of previous funding, prompting concerns over the route’s potential discontinuation.
• Bhubaneswar-Singapore Route:
  VGF support will continue for another six months with updated cost adjustments, ensuring the route's continued viability. Despite facing challenges like low passenger load and high operating costs, the Singapore route is seen as essential for bolstering Odisha’s international trade and cooperation.
• Discontinuation of VGF Support:
  VGF support will end for the Bhubaneswar-Bangkok route on October 27, 2025, and for the Bhubaneswar-Abu Dhabi route on December 11, 2025. This decision reflects a strategic reallocation of resources, prioritizing high-demand international routes.

Strategic Rationale:

Dubai serves as a critical hub for Odisha’s migrant workers, and direct flight connections are crucial for reducing dependence on indirect routes through major cities. Singapore remains a vital partner for Odisha in trade, investment, and institutional ties, making the continued operation of the Singapore route essential. Maintaining these international links is also pivotal for securing valuable airport slots, stabilizing key routes, and advancing Odisha's ambitions to become a regional aviation hub under the B-MAAN (Building and Maintaining Aviation Assets and Networks) scheme.

Financial Implication:

The estimated total VGF support for the two routes over the next six months is approximately ₹26.87 crore. The funds will be drawn from the B-MAAN scheme’s approved budget. Future decisions on the continuation or modification of these international routes will be made by the Chief Minister after periodic performance evaluations.