For UDAN, the government has created the Regional

For UDAN, the government has created the Regional

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For UDAN, the government has created the Regional
Connectivity Fund (RCF) — which will be 80 per cent financed by the Centre and the rest by the respective states.
To provide funding for the flights operated under the regional connectivity scheme, the Ministry decided to impose a levy on every departure on major air routes such as the national capital, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata.
FIA said it has not challenged the creation of the fund, but only the imposition of the levy, as it was allegedly “beyond the executive competence and required Parliamentary enactment” as the levy was in the nature of a tax.
It has said that insertion of the rule for imposing the levy was illegal as it allows imposition of a tax by delegated legislation without there being any authority in the Aircraft Act to do so.
It has alleged that in order to evade the law, the Centre has kept the notification “deliberately vague” without specifying the nature of the levy.
As per FIA, flights under category II or II A routes, those operated on regional connectivity scheme routes and those having a max certified take-off mass not exceeding 40,000 kilograms (or small aircraft) have been exempted from the levy. PTI HMP PPS
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