Govt to extend UDAN scheme
About the scheme
- In 2017, the Ministry of Civil Aviation launched the Regional Connectivity Scheme (RCS) “UDAN” (Ude Desh Ka Aam Naagrik) to provide 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 launched UDAN 5.0 in 2023 to further enhance the connectivity to remote areas and achieve last mile connectivity through helicopters.
Why in News?
- Civil Aviation Minister K. Rammohan Naidu said that the government will extend the regional air connectivity scheme UDAN for 10 more years.
- As many as 601 routes and 71 airports have been operationalised under the regional air connectivity scheme.
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