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.
• It aims to achieve its objective through revival of existing air-strips and airports to make flying affordable to the common man who wants 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 Airports Authority of India (AAI) is designated as the Implementing Agency under this Scheme.
• Following four successful rounds of the scheme, the Ministry of Civil Aviation has launched UDAN 5 to further enhance the connectivity to remote areas of the country and achieve last mile connectivity through helicopters. 

Why in News?

• Rs.3587 crores has so far been disbursed to the Selected Airline Operators towards Viability Gap Funding (VGF) as per the provisions of the Scheme.