About the scheme

• In 2017, the Ministry of Civil Aviation launched the Regional Connectivity Scheme (RCS) “UDAN” (Ude Desh Ka Aam Naagrik) which aims at providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports to make flying affordable to the common man who want to travel to and fro the Tier 2 and Tier 3 cities of the country.
• UDAN has a unique market-based model. Airline routes are allocated to operators selected through a competitive bidding mechanism. 
• Under the scheme, nearly half of the seats in UDAN flights are offered at subsidised fares, and the participating carriers are provided a certain amount of viability gap funding (VGF) – an amount shared between the Centre and the concerned states.
• The scheme also offers waiver of certain statutory charges and taxes on jet fuel to companies in order to offer affordable connectivity.
• The airport that will be renovated under this scheme will be chosen after referring to the respective State government. Together with the State government the Central government will revive the dysfunctional and unserved airports of the country.
• The Airports Authority of India (AAI) is designated as the Implementing Agency under this Scheme.

Why in News?

• Following the four successful rounds of bidding, the Ministry of Civil Aviation has launched the 5th round of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN) to further enhance the connectivity to remote and regional areas of the country and achieve last mile connectivity.

https://pib.gov.in/PressReleasePage.aspx?PRID=1918622