Bihar Cabinet Approves MoU with AAI for Six Airports under UDAN

Why in News?
The Bihar Cabinet has approved signing an MoU between the Airports Authority of India (AAI) and the State government to develop six small airports under the UDAN scheme.


Key Facts for UPSC

Airports to be Developed:

  • Madhubani

  • Birpur (Supaul)

  • Munger

  • Valmikinagar (West Champaran)

  • Muzaffarpur

  • Saharsa

Financial Allocation:

  • Initial allotment: ₹25 crore per airport for infrastructure development.

Related State Policy Measures:

  • VAT on Aviation Turbine Fuel (ATF) reduced from 29% to 4% to encourage more flights and make Bihar competitive with neighbouring states.

Recent Developments in Bihar Aviation Infrastructure:

  • PM inaugurated Patna Airport’s new terminal (cost: ₹1,200 crore) → capacity to handle 1 crore passengers/year.

  • Foundation laid for ₹1,410 crore civil enclave at Bihta Airport.

About UDAN Scheme (Ude Desh ka Aam Nagrik):

  • Launch: 2016 by Ministry of Civil Aviation.

  • Objective: Enhance regional air connectivity and make air travel affordable.

  • Funding: Viability Gap Funding (VGF) from central/state governments; concessions from airport operators.

  • Special Focus: Unserved and underserved airports in Tier-2 and Tier-3 cities.


Additional Cabinet Decisions:

  • Contract extension for 1,717 Special Auxiliary Police (SAP) personnel (retired Army staff) for FY 2025-26.

  • Transfer of 70.5 acres to Industries Department for industrial area development in Saran district.