UDAN Scheme (Ude Desh Ka Aam Nagrik)

  1. Introduction
  2. About UDAN
  3. Features
  4. Components
  5. Funding
  6. UDAN 4.0

Introduction

The Centre plans to operationalise 100 unserved and underserved airports and start at least 1,000 air routes under a regional connectivity scheme called UDAN scheme (Ude Desh Ka Aam Nagrik).

About UDAN 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.

Features of UDAN Scheme

  1. Improving air transport infrastructure in all parts of the country with a special focus on remote areas.
  2. Making 425 unserved and underserved airports operational in the country.
  3. Improving the economy of the country by facilitating faster connectivity.
  4. Creating job opportunities in the aviation sector.
  5. Making air services available at lower prices.

Components of UDAN Scheme

It has two components

  1. The first one is to improve the existing airports and develop new ones for faster regional connectivity.
  2. The second one is the addition of new, capped airfare and financially viable regional real roots.

Funding for UDAN Scheme

Central Government

  • Value Gap Funding (VGF) to the airlines to subsidise the fair cost.
  • Concession on ticket-related taxes.
  • Flight’s code sharing.

State Government

  • Reducing the GST to 1%.
  • Improving fueling infrastructure by coordinating with oil companies.
  • 20 % VG.
  • Providing free security personnel and land for airport development.
  • Supplying water, electricity, etc., at cheap rates.

Airport Operators

  • No charge for parking, landing, storage, etc.
  • Nil Terminal Navigation Landing Charge.
  • 4% discount on UDAN-RCS flight’s Route Navigation and Facilitation Charge (RNFC).

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.