Jaipur Government Cuts VAT on Aviation Fuel to Boost Tourism and Jobs
The Government of Rajasthan is embarking on an ambitious strategy to significantly bolster its civil aviation sector, aiming to unlock unprecedented opportunities for tourism promotion and job creation across the state. This proactive stance, articulated by the Minister of State for Civil Aviation, underscores a clear vision for integrating enhanced air connectivity with Rajasthan’s economic development. Key reforms, such as a drastic reduction in Value Added Tax (VAT) on aviation fuel for Regional Connectivity Scheme (RCS) flights, are setting the stage for more accessible and affordable air travel, promising a transformative impact on both leisure and business sectors.
A cornerstone of this strategy is the substantial reduction of VAT on aviation turbine fuel (ATF) for RCS flights, slashed from a significant 26 percent to a mere 1 percent. This fiscal incentive is designed to make regional air routes more viable for airlines, thereby expanding connectivity to previously underserved or unserved areas. Such policy interventions are critical for fostering balanced regional growth, ensuring that the economic benefits of tourism and increased mobility are distributed equitably across the state, rather than concentrating solely in major urban centres. This move also aligns with the broader national agenda of “Ude Desh ka Aam Nagrik” (UDAN), making air travel accessible to a wider demographic.
Beyond fiscal adjustments, the state government is making substantial infrastructural commitments. Free and obstruction-free land has been provisioned to the Airports Authority of India (AAI) for the construction of the Kota Greenfield Airport, a crucial development poised to unlock a new economic gateway. Similar land allocations are progressing for the expansion of Udaipur Airport and the establishment of a civil enclave at Uttarlai in Barmer. These infrastructure enhancements are not merely about increasing capacity; they are about creating a robust, interconnected aviation network that can sustainably support the projected growth in tourist footfall and industrial activity, minimising the carbon footprint associated with increased travel through optimised routes and modern facilities.
Recognising the burgeoning potential of aerial mobility, Rajasthan is also significantly expanding its helicopter services network. With 118 existing helipads, plans are underway to develop new facilities at all district headquarters, major tourist sites, and locations critical for emergency medical response. This robust expansion supports the formulation of helicopter-based tourism, religious travel, and joy rides, offering unique perspectives of Rajasthan’s rich heritage. Crucially, the state is actively developing a Helicopter Emergency Medical Service (HEMS) model, seeking central assistance for its operational viability. Such an initiative is a significant step towards creating more equitable healthcare access, particularly for remote or disaster-prone regions, embodying a gender-neutral approach to critical emergency services.
The vision extends to novel modes of air transport, with districts like Udaipur, Kota (Chambal), Banswara, and Tonk (Bisalpur) identified as promising sites for seaplane operations. The state has formally requested the Central government to assess their feasibility and include them under the RCS scheme. Integrating seaplanes, while potentially offering scenic travel, would require meticulous environmental assessments to ensure they are truly eco-friendly and do not impact delicate aquatic ecosystems. This diversified approach to air travel aims to tap into Rajasthan’s unique geographical features, broadening its appeal as a global tourism destination while fostering localised economic opportunities.
The strategic importance of the RCS for Rajasthan cannot be overstated, given its rich tapestry of heritage, vibrant religious tourism circuits, burgeoning industrial zones, and reputable educational institutions. With RCS flights currently operating from three airports, the government has submitted proposals to include key destinations such as Mount Abu, Sikar, Sawai Madhopur, Bhilwara, and Sri Ganganagar under the scheme’s ambit. Furthermore, to enhance connectivity with major metropolitan centres, the Central Government has been requested to initiate regular commercial flights from Bikaner, Jodhpur, and Kishangarh to high-demand cities including Mumbai, Kolkata, Surat, and Bengaluru, thereby facilitating smoother travel for both business and leisure travellers.
Leveraging its existing 19 airstrips, which vary in length from 3,300 feet to 9,800 feet, Rajasthan is actively promoting their utilisation for Flying Training Organisations (FTOs), air sports, and Maintenance, Repair, and Overhaul (MRO) activities. An operational FTO in Kishangarh is already training pilots, with a second scheduled to commence in Bhilwara in August 2025. This focus on skill development and ancillary aviation services not only creates high-value employment opportunities but also positions Rajasthan as a hub for aviation training and services, contributing to the nation’s human capital development in the aviation sector.
The state’s commitment to attracting private investment in the aviation sector is evident through the Rajasthan Investment Promotion Scheme (RIPS) and the successful orchestration of the Rising Rajasthan Global Investment Summit. These efforts have already culminated in over 10 Memoranda of Understanding (MoUs) signed, projecting an estimated investment inflow of ₹1,500 crore into the aviation sector. This robust policy framework, encapsulated in the comprehensive Civil Aviation Policy 2024, is designed for the planned and sustainable development of the aviation sector, showcasing a holistic vision for aviation-driven economic growth. The state continues to seek robust financial, technical, and policy collaboration from the Central government to solidify Rajasthan’s position as a leading state in India’s aviation landscape.