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The Union government has advised the States to take certain financial measures like slashing VAT on jet fuel up-¡lifted by airlines and underwriting of some seats to encourage aviation growth. It also wants the state governments to waive electricity and municipal charges like house and property taxes for five years for airport infrastructure. A draft policy to promote regional and remote area connectivity says the development of airport in strategic and remote areas by the Airports Authority of India (AAI) would be guided by ´the support provided by State governments´.
In order to promote air connectivity across the country as a priority, the ministry has proposed a major shift in the route dispersal policy, promising airlines which fly to these regions exemption from various charges and other incentives.