Maharashtra Offers 100% Viability Gap Funding for Navi Mumbai-Sindhudurg Flights
The Maharashtra Government is pushing to establish direct flight connectivity between the newly developed Navi Mumbai International Airport and Sindhudurg Chipi Airport by offering 100% viability gap funding to commercial airlines under the Ministry of Civil Aviation's regional connectivity scheme.
State-run nodal agency Maharashtra Airport Development Company Ltd (MADC) has issued a request for proposal to engage commercial carriers for the route under RCS–UDAN. The initiative is aimed at connecting Mumbai's commercial centre directly with the Konkan coastal region, which features UNESCO-inscribed Maratha forts, beaches, and eco-tourism destinations.
Previous efforts to operationalise the route through regional carriers without state support failed to sustain commercial viability. To address airline reluctance, the state government has stepped in to underwrite financial risks by covering 100% viability gap funding. Under this arrangement, the state will fund 50% of the seats on Category-2 aircraft with 40 to 80 seats, and 38 seats on Category-3 aircraft with over 80 seats. The state has capped its support at up to Rs 6,370 per seat.
Passenger fares under the e-tender have been capped at Rs 3,580 for the 374-kilometre flight from Navi Mumbai to Sindhudurg, and Rs 3,735 for the 388-kilometre return journey. The contract will be awarded through a least cost based selection process to the qualified bidder requiring the lowest subsidy per seat. The selected carrier will handle all commercial operations, including ground handling, passenger processing, and e-ticketing, and must sell all discounted RCS seats prior to releasing non-subsidised inventory.
MADC has instituted strict operational terms under the agreement. If an aircraft remains grounded for more than two consecutive operational days without a replacement within 15 days, the operator will be penalised Rs 1 lakh per operational day. Additionally, airlines that fail to maintain a 75% passenger turnout across two consecutive months face subsidy reductions and potential contract termination.
Sindhudurg Chipi Airport, developed and operated by IRB Infrastructure, is licensed for Airbus A321 aircraft. The airport currently accommodates up to three Code-C narrow-body aircraft, with construction underway for three additional parking bays covering Code-A, Code-B, and Code-C specifications.
