The Mohan Charan Majhi government has decided to extend financial support to IndiGo to ensure continued international flight connectivity from Bhubaneswar to Dubai and Singapore, amid concerns over the possible suspension of services due to commercial challenges.
The cabinet on Saturday approved State Viability Gap Funding (VGF) for these routes to bridge financial losses incurred by the airline and keep operations afloat. The move comes amid reports that IndiGo may halt direct flights between Bhubaneswar and Dubai after March 30, 2026, as the route had stopped accepting online bookings.
Following appeals from the Odisha Samaj in the UAE and demands by the Opposition BJD, the government reaffirmed its support. IndiGo had launched the Bhubaneswar–Dubai route on May 15, 2023, operating three days a week with VGF assistance. The state had earlier allocated ₹100 crore annually to support such international services until passenger occupancy reached viable levels.
In an official statement, the government said: “Odisha has proposed to continue and rationalise VGF for select international routes from Bhubaneswar to support global connectivity, assist the Odia diaspora, and promote aviation-led growth.”
Chief secretary Anu Garg said Dubai remains a critical hub for Odia migrant workers and Singapore is a key trade and institutional partner. “Direct connectivity avoids reliance on other metros. Sustaining operations is essential for securing airport slots and Odisha’s aviation hub ambitions under the B-MAAN scheme,” she said.
The proposed VGF for the two routes over the next six months is ₹26.87 crore, which will be drawn from the B-MAAN scheme. Further decisions on route continuation will be made at the chief minister’s level based on periodic reviews.
The cabinet also approved the “State Cooperation Policy-2026” to revitalise cooperatives in agriculture, dairy, handloom, fisheries, and housing sectors.
Additionally, it cleared a proposal by Kalyani Steel to establish an integrated automotive, aerospace and defence equipment complex over 1,100 acres in Dhenkanal district and a new state council scheme to boost science and innovation for socio-economic development.
