Cabinet approves Rs 26.8cr support for direct flights to Dubai, Singapore till March

Bhubaneswar: The state cabinet meeting, chaired by chief minister Mohan Charan Majhi, on Saturday approved Rs 26.87 crore as viability gap funding (VGF) for IndiGo for a six-month period — from Oct 27, 2025, to March this year — to continue its direct international flights from the city to Dubai and Singapore.Briefing the media, chief secretary Anu Garg said the cabinet cleared the VGF support to sustain international connectivity, support the Odia diaspora, and strengthen Odisha's aviation-led economic growth.She indicated that the govt is open to continuing the subsidy beyond March. "The chief minister will take a final call on any further extension," she added. Sources said the govt will bring clarity on VGF beyond March in the upcoming budget.The decision comes amid concerns raised by Odias living in the UAE and industry bodies such as the Hotel and Restaurant Association of Odisha, after IndiGo stopped accepting bookings for the Dubai and Singapore routes beyond March, fuelling fears of possible discontinuation.The Bhubaneswar-Dubai and Bhubaneswar-Singapore routes, operated by IndiGo, were first launched in 2023 with state VGF support to bridge the gap between operational costs and ticket revenue during the initial phase, when passenger load factors were low.A govt statement said the fresh VGF support was approved in view of a sharp decline in passenger load following withdrawal of earlier subsidies, which raised the risk of the routes becoming commercially unviable.The cabinet, however, decided to discontinue VGF support for the Bhubaneswar-Bangkok route with effect from Oct 27, 2025, and for the Bhubaneswar-Abu Dhabi route from Dec 11, 2025. IndiGo already stopped operating direct services to Abu Dhabi since Dec 11. However, its Bangkok service is on, and bookings are open beyond March. The rationalisation, it said, aimed to optimise public resources while stabilising priority international routes.According to the govt, Dubai is a critical hub for the Odia migrant workforce, making direct connectivity essential to avoid dependence on indirect travel via other metros. Singapore, meanwhile, remains a key partner for Odisha in trade, investment and institutional collaboration. Sustained international operations are also vital for retaining airport slots, stabilising routes, and advancing the state's ambition of emerging as a regional aviation hub under the B-MAAN (Building and Maintaining Aviation Assets and Networks) scheme.