The Narendra Modi government has announced an ambitious plan to fulfil dreams of 300 million middle-class fly by limiting airfares between two non-metro cities to Rs 2,500 for flights lasting an hour, according to the draft civil aviation policy. 

The draft will be put up for consultations for three weeks and a final policy will be floated by the end of this year. 

This initiative was announced as part of the civil aviation policy in Delhi today. "The prime minister wanted the policy to aim at taking flying to masses. We will fix fares at Rs 2,500 and the losses would be bridged through a viability gap funding (VGF). Carriers operating regional flight will get VGF indexed to ATF prices and inflation. While 80% funding for VGF will be from the centre the rest 20% will be from the states," announced civil aviation secretary R N Choubey.