Maharashtra is seeking airlines to operate direct flights between Navi Mumbai International Airport and Sindhudurg’s Chipi Airport under the UDAN scheme. MADC has offered 100% viability gap funding to reduce airline risks. The state aims to cap fares at ₹3,580 and create a stable air link between Mumbai’s region and the Konkan coast for tourism and commerce.

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Mumbai: The Maharashtra Government is pushing for direct flights between Sindhudurg and Navi Mumbai International Airport. The state is now looking to attract airlines through the Ministry of Civil Aviation's regional connectivity scheme by availing 100% viability gap funding (VGF).

MADC Floats Airline Proposal

The state-run nodal agency, Maharashtra Airport Development Company Ltd (MADC), has issued a request for proposal (RFP) to engage commercial airlines to operate direct flights connecting the newly developed Navi Mumbai International Airport with Sindhudurg (Chipi) Airport under the RCS – UDAN.

The highly anticipated route was envisioned to link Mumbai's commercial pulse directly with the Konkan coastal belt – home to UNESCO-inscribed Maratha forts, pristine beaches and eco-tourism destinations. However, the sector has repeatedly failed to achieve sustainable, unassisted commercial operation as sources said that the state's earlier attempts to operationalise the route through regional carriers had failed.

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State To Cover Airline Risks

To overcome airline hesitation, the Government of Maharashtra has decided to step in to underwrite financial risks by offering 100% VGF for the proposed route. Under this scheme, the state will provide 100% aid for 50% seats on a Category-2 aircraft (40 to 80 seater) and 38 seats in case of Category-3 aircraft (over 80 seater). According to the e-tender, the state aims to cap passenger fares at Rs 3,580 for a 374km journey from NMIA to Sindhudurg and Rs 3,735 for a 388km return journey. The state has assured a support cap of up to Rs 6,370 per seat.

According to official procurement documents released by MADC, the selection will be conducted via a least cost based selection (LCBS) process. The contract will be awarded to the qualified bidder offering the lowest VGF requirement per seat. Selected airlines will manage full commercial operations, including ground handling, passenger processing and e-ticketing. Moreover, operators will have to prioritise selling all discounted RCS seats before opening non-RCS inventory.

Under the enclosed service level agreement, if an aircraft remains grounded for more than two consecutive operational days without replacement within 15 days, MADC will impose a penalty of Rs 1 lakh per operational day. Furthermore, operators failing to maintain a 75% passenger turnout over two consecutive months will face VGF reductions and potential contract termination.

By leveraging financial subsidies and strict performance benchmarks, MADC aims to finally lock down stable year-round air bridges between Mumbai and Chipi, boosting regional commerce and tourism across the Konkan belt. Sindhudurg Chipi Airport is developed and operated by IRB Infrastructure and is licensed for Airbus A321 aircraft. It can park up to three Code-C aircraft (size of a standard narrow body aircraft) and construction for three more parkings, one each for Code- A, B and C, is underway.

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