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Uttar Pradesh CM Yogi Adtiyanath’s decision is seen as a strategic move to position the Noida’s Jewar Airport as a competitive player in the aviation sector.
UP reduces VAT on aviation fuel to 1%. (File Photo for representation)
The ticket prices for those looking forward to flying from the upcoming Noida International Airport at Jewar might be cheaper than those from Delhi’s Indira Gandhi International (IGI) Airport. In a crucial decision made by Uttar Pradesh Chief Minister Yogi Adityanath to boost the state’s aviation sector, the VAT on aviation fuel was significantly reduced to just 1%.
In stark contrast, Delhi continues to charge a hefty 25% VAT on aviation fuel. This move is expected to not only help airline companies by lowering their operational costs but also lead to more affordable airfares for passengers.
This step comes at a pivotal time, as preparations for the opening of Jewar Airport are underway. The airport is slated to begin operations in April 2025, and the Uttar Pradesh government’s decision is seen as a strategic move to position the new airport as a competitive player in the aviation sector.
Experts believe that the reduced VAT on fuel will be a game-changer. Fuel costs are a major part of an airline’s operational expenses, and lowering these costs is likely to result in cheaper flights for travellers. This is especially important for Jewar Airport, as it strives to meet national and international aviation standards.
The Airports Economic Regulatory Authority of India (AERA) is set to start discussions soon on the fare structure for the new airport. They are expected to issue guidelines and set pricing for the airport’s operations, which will further define its competitiveness in the region.
Jewar Airport, once operational, is set to become the largest airport in nothern part of the country. It will offer a much-needed alternative to the crowded IGI airport, providing more convenient and affordable travel options for passengers in the Delhi-NCR region. With the growing demand for air travel and congestion at IGI, the Jewar airport is expected to offer relief to travellers, making it an attractive choice for flying in and out of the region.
This move by the Uttar Pradesh government is being hailed as a significant step forward for the aviation industry in the state and is expected to play a key role in the growth of Noida International Airport as a major hub in the country.
