The government is working on a new civil aviation policy which seeks to provide connectivity to the smaller cities even as domestic air traffic has been on a growth path the last year, President Pranab Mukherjee said. Last October, the Ministry had unveiled an elaborate and revised draft National Civil Aviation Policy and stakeholders were given time till November 30 to give their feedback. The Ministry had proposed a raft of measures to bolster regional air connectivity, including levying of additional cess and providing viability gap funding. The draft policy also focuses on proposals for tax sops and over 50 per cent FDI for Indian carriers. It moots setting up no-frills airports, VGF for airlines to enhance regional connectivity and talks about reviewing the decade-old 5/20 norm. Under the proposed policy, fares are to capped at Rs.2,500 for an hour-long flight under the regional connectivity scheme for places currently not covered. This may be finalised next month and implemented next fiscal.