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UDAN scheme

GS Paper 3

Topics Covered:  Awareness in space. 



The Civil Aviation Ministry has announced its agenda over the next 100 days. It includes: 

  1. Launching 50 new routes under the UDAN scheme
  2. 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. 


UDAN 4.0

  • 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



Prelims Link: 

  1. When was UDAN scheme launched? 
  2. Implementation and funding of the scheme. 
  3. Overview of the National Civil Aviation Policy. 
  4. Under the scheme, who provides Viability Gap Funding (VGF) to subsidise the airfare? 
  5. Role of state governments under the scheme. 

Mains Link: 

Discuss the performance of UDAN scheme. 

Sources: the Hindu.