As the page turned from 2024 to 2025, Jharsuguda got a new airline in the form of Star Air which launched flights from Hyderabad to Jharsudguda operating the E175s on the route. The service will expand with Raipur also being connected by the airline a few weeks from now. Starting March 01, IndiGo will launch a non-stop flight from Mumbai to Jharsuguda. When these additions take place, Jharsuguda will be connected to Delhi, Bengaluru, Hyderabad, Bhubaneswar, Kolkata and Raipur.
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With three airlines operating to the airport, which initially came to the centrestage with SpiceJet launching flights to the airport under RCS-UDAN. The airline does not operate to Jharsuguda anymore. Currently government owned Alliance Air has operations to Jharsuguda with flights from Bhubaneswar (four times a week), IndiGo operates from Delhi, Bengaluru and Kolkata while Star Air has operations from Hyderabad.
Why Jharsuguda?
Prima facie Jharsuguda might look like any other non descript town in India, which as an urban conglomerate does not even feature in top 50 in India but has connectivity which is disproportionately higher. However the area is rich in natural resources and that has attracted quite a significant number of industries to the region. Connectivity is one of the major criterias for any type of industry to be present.
Not that long ago Jharsuguda was included in one of the most backward districts in the country. It also hosts a large tribal population. All these are typical indicators of why air connectivity will not be attracted to this place. However, the government in Odisha or rather the successive governments in Odisha seem to be thinking differently and in fact doing everything they can to ensure development of backward regions by bringing in air connectivity.
Odisha is a unique State. Last year it made a policy for Viability Gap Funding (VGF) to fund any shortfall that the airline may face for operating to airports in the state. This goes beyond the earlier policy of supporting inter-state connectivity. Interestingly, news reports indicated some amount as VGF which I could not independently verify. However, unlike Uttar Pradesh where the state is subsidising connectivity within the state, Odisha has been open to fund connectivity outside the state as well which has helped Bhubaneswhar see new flights and connections along with Jharsuguda seeing new airlines, flights and connections.
Will more states follow this model?
The Regional Connectivity Scheme – UDAN has had its fair share of criticism but to a large extent has achieved its primary objective of starting services to new airports. It may have helped to have Mrs. Usha Padhee as Principal Secretary, because she was driving the RCS-UDAN scheme while being posted at the Ministry of Civil Aviation. The state also has its own airline of sorts with IndiaOne Air dedicating most of its capacity to flights within Odisha.
The model needs a deeper study since it has the ability to be replicated if found feasible. Some back of the envelope calculations that I did show that the subsidy burden will be much lesser to subsidise a Cessna Caravan (or a Twin Otter) than an ATR72 which IndiGo / Alliance Air / Fly91 operate. The smaller planes may also be right sized for the routes.
India has been a graveyard for regional aviation, but for it to succeed someday, it is essential that such a model is replicated across states which will put the onus on state governments for connectivity within the state which helps small industries, farmers and MSMEs. I have often criticised routes like Hubli – Goa or Mysore – Goa under RCS-UDAN for the nature or length of routes, unless they were operating on 0 VGF basis. Over a period like the scheme envisions commercialisation of routes, it should also envision only opening up of airports with a centrally funded scheme and the rest of the routes coming up via state funds where more conditions around timings and seats can be granted because the state level authorities know the requirements better. Will it won’t it? Policy is a game of waiting.
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