The Central Government has decided to impose a levy on scheduled flights operated within India to fund Regional Air Connectivity Fund, in the following manner:
i) Rs. 7,500 with stage length upto 1,000km.
ii) Rs. 8,000 with stage length more than 1,000 km to 1,500 km, and
iii) Rs. 8,500 with stage length above 1,500 km.
However, following flights shall be exempted from the said levy:
i) Flights operated on CAT II/ CAT IIA routes as specified in Route Dispersal Guidelines issued under Rule 134 (1A).
ii) Flights operated on Regional Connectivity Scheme (RCS) routes.
iii) Flights operated with aircraft having maximum certified take off mass not exceeding 40,000 kg.
As provided in National Civil Aviation Policy – 2016, payment of Viability Gap Funding (VGF) will be made to the selected airline operators from the Regional Connectivity Fund and the State Governments will be asked to reimburse the applicable share (20% for States other than for North-Eastern States and Union Territories of India, where the ratio will be 10%) towards VGF for respective RCS routes.