Shimla, September 22, 2026: In a major push to enhance air regional connectivity and boost tourism across the hilly state, a tripartite Memorandum of Understanding (MoU) was signed today between the Government of Himachal Pradesh, the Ministry of Civil Aviation (MoCA), and the Airports Authority of India (AAI) in New Delhi.
The agreement, executed under the modified Regional Connectivity Scheme (RCS)-UDAN, aims to strengthen aviation infrastructure and improve air transit across Himachal Pradesh over the next 10 years.
The MoU signing took place in the presence of Union Minister for Civil Aviation Kinjarapu Rammohan Naidu and Union Minister of State for Civil Aviation Murlidhar Mohol.
Briefing media on the development, Secretary for Tourism and Civil Aviation Sandeep Kumar stated that the tripartite framework establishes a structured roadmap for operating both existing and new UDAN routes, alongside developing eligible aviation infrastructure in the state.
Under the standard operational guidelines, the current financial model requires a 20:80 cost-sharing pattern for Viability Gap Funding (VGF), where the Himachal Pradesh state government contributes 20 percent while the remaining 80 percent is funded by the Central Government.
However, citing the state’s challenging terrain and the high operational expenses of mountain aviation, Chief Minister Thakur Sukhvinder Singh Sukhu has formally petitioned the Union Ministry of Civil Aviation to relax the funding terms. The state government is seeking a modified 90:10 VGF structure, requesting the Centre to bear 90 percent of the subsidy burden while the state contributes 10 percent—bringing it on par with other special-category Himalayan territories.
Officials emphasize that upgrading the air network is vital for the landlocked state, as reliable flight options will significantly ease travel for tourists and business delegates while delivering essential connectivity to remote and high-altitude areas.
