GS Paper 3
Topics Covered: Awareness in space.
Context:
The Civil Aviation Ministry has announced its agenda over the next 100 days. It includes:
- Launching 50 new routes under the UDAN scheme.
- Rationalising the value added tax (VAT) charged on aviation turbine fuel (ATF).
About UDAN scheme (Ude Desh Ka Aam Nagrik) Scheme:
- The scheme is aimed at enhancing connectivity to remote and regional areas of the country and making air travel affordable.
- It is a key component of Centre’s National Civil Aviation Policy led by Prime Minister Narendra Modi and launched in June 2016.
- 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 will be jointly funded by the central government and state governments.
- The scheme will run for 10 years and can be extended thereafter.
- The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands.
- The airports that had already been developed by Airports Authority of India (AAI) are given higher priority for the award of VGF (Viability Gap Funding) under the Scheme.
- Under UDAN 4, the operation of helicopters and seaplanes is also been incorporated.
Insta Curious:
Did you know that the ATF is not within the ambit of the Goods and Services Tax (GST)? More about items not covered under GST: read this.
InstaLinks:
Prelims Link:
- When was UDAN scheme launched?
- Implementation and funding of the scheme.
- Overview of the National Civil Aviation Policy.
- Under the scheme, who provides Viability Gap Funding (VGF) to subsidise the airfare?
- Role of state governments under the scheme.
Mains Link:
Discuss the performance of UDAN scheme.
Sources: the Hindu.
