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VGF Supports Fly Dubai

Bhubaneswar; The Odisha Cabinet cleared a proposal to continue and rationalize State Viability Gap Funding (VGF) support for specific international air routes from Bhubaneswar. This move aims to sustain global connectivity and support the state’s economic growth through aviation.

Under the proposal, VGF support will be extended for a six-month period for flights operated by IndiGo connecting Bhubaneswar to Dubai and Singapore. The Dubai route is slated to receive support for the Winter Schedule from October 27, 2025, to March 29, 2026, to counter a sharp decline in passengers and prevent the risk of the route being discontinued. Similarly, the Singapore route will receive six months of indexed support to address high operating costs and low passenger loads.

However, the state plans to withdraw VGF support for two other routes. Support for the Bhubaneswar-Bangkok flight will end on October 27, 2025, followed by the discontinuation of support for the Abu Dhabi route on December 21, 2025.

The strategic rationale behind maintaining the Dubai and Singapore routes focuses on their importance to the Odia diaspora and international trade. Dubai serves as a major hub for the state’s migrant workforce, while Singapore is a key partner in investment and institutional collaboration. Retaining these operations is also viewed as essential for maintaining airport slots and advancing the state’s B-MAAN scheme to become a regional aviation hub.

The total financial implication for supporting these two routes for six months is estimated at 26.87 crore. These funds will be allocated from the existing B-MAAN scheme budget. Any future modifications or extensions for these international routes will be determined by the Chief Minister following periodic performance reviews.