IAS Gyan

Daily News Analysis


22nd July, 2022 SCHEMES IN NEWS

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In News

  • The Union Minister of State for Civil Aviation has stated in the Lok Sabha that the government has introduced the UDAN (Ude Desh ka Aam Nagrik) scheme to encourage connectivity between the Tier-2 and 3 cities in the country and to improve connectivity between unserved and underserved airports.


About UDAN Scheme

  • Ude Desh ka Aam Naagrik or UDAN is a regional airport development programme of the Union Government and also a part of the Regional Connectivity Scheme (RCS).
  • The main objective is to upgrade under-serviced air routes and to promote air transport infrastructure development in all regions and states of India.
  • Its goal is to make air travel affordable, boost economic development, and promote job growth.


Key features of the UDAN Scheme

  • The UDAN Scheme is a key element of the National Civil Aviation Policy (NCAP) which was released by the Ministry of Civil Aviation (India) in 2016.
  • It is jointly funded by the Union government and state governments.
  • Develop new airports and enhance the existing regional airports to increase the number of operational airports with regularly scheduled flights.
  • The UDAN scheme will run for 10 years and can be extended thereafter.
  • Concessions from the Union Government;
    • Created a Viability Gap Funding (VGF) to subsidise the airfare.
    • Concession on service tax on tickets.
  • Concessions from State Governments;
    • Reduction of GST for 10 years.
    • Coordinate with oil companies to create fuelling infrastructure on airports.
    • Provide free land for the development of the airport, with multimodal (rail, road, metro, waterways, etc.) hinterland connectivity.
    • Provide free security Systems and manpower.
    • Provision of water, electricity and other utilities at a reduced rate.
    • 20% share of Viability Gap Funding; North-Eastern states, Uttrakhand, Himachal Pradesh and Union territories to provide 10% share only.
  • Concessions from airport operators;
    • No landing, parking or other charges.
    • No Terminal Navigation Landing Charges.
  • There is a cap of maximum fare of Rs 2,500 per hour of flight for 50% of the seats, connecting un-served and underserved regional airports, the remaining 50% of seats will be priced at market rate.
  • For helicopter services, the maximum fare is also capped at Rs 2,500 for every 30-minute leg of the flight.


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About International Air Connectivity Scheme (IACS)

  • The Ministry of Civil Aviation has launched the International Air Connectivity Scheme (IACS) under the “International Ude Desh ka Aam Nagrik (UDAN)” initiative.
  • The main objective of the scheme is to improve air connectivity between the certain Indian States with designated international destinations to promote the socio-economic growth of the Indian state.
  • The scheme is also supported by the State Governments.
    • The State Government of Assam, Manipur and Tripura have specified routes connecting Guwahati, Imphal and Agartala with selected international destinations viz. Bangkok, Dhaka, Kathmandu, Yangon, Hanoi, Mandalay, Kunming and Chittagong.
  • Development and up-gradation of airports to international standards are undertaken by concerned airport operators.