New Delhi, June 15: The Union Cabinet on Wednesday cleared the civil aviation policy, which is reportedly aimed at promoting regional connectivity and providing a boost to the domestic aviation sector. The policy also provides a cap of Rs. 2,500, for all hour-long domestic flights. The policy has a slew of passenger friendly measures, which provide a much needed relief to frequent flyers. This comes after the tourism secretary had promised last month that the new policy will address issues of regional connectivity aggressively and in a fulfilling manner. Also Read - Domestic Flights Update: Now Take Flights To Mangalore, Madurai, Coimbatore, Kangra - Read On

The policy is aimed at strengthening “the domestic aviation sector by tapping its high growth potential with provisions such as capping airfares at Rs 2,500 for a one-hour flight, auctioning of unilateral traffic rights, tax incentives for airlines, maintenance and repair works of aircraft besides mooting 2 per cent levy on all air tickets to fund regional connectivity scheme and providing viability gap funding for airlines to encourage operate on regional routes.” ALSO READ: In aviation policy draft, India seeks to make air travel affordable Also Read - Cabinet Approves Rs 8575 cr East-West Corridor Metro Project in Kolkata, Reforms in Natural Gas Sector | Full Details

The policy draft had been unveiled by the NDA government, for the first time in  November 2014, which was subsequently replaced with another draft in October 2015. Initially, the policy was to be implemented in the last financial year, as certain proposals were to be applicable from April 2016. But there were delays on account of difficulties in striking a balance between different key stakeholders, over issues like 5/20 rule that allows a carrier to fly abroad only if it has 20 aircraft and has flown domestic for five years. Also Read - Delhi Airport Terminal-2 to Resume Operations From October 1 With Nearly 100 Daily Flights

(With agency inputs)