IAS Gyan

Daily News Analysis


18th August, 2022 Polity and Governance

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In News

  • UDAN (Ude Deshka Aam Nagrik) Scheme of the Union Ministry of Civil Aviation has completed 5 years.
  • The scheme was started in 2016 with the objective to enhance aviation infrastructure and air connectivity in tier II and tier III cities.
  • UDAN scheme has increased the regional air connectivity;
    • From 74 operational airports in 2014 to 141 by 2022.
    • 68 underserved/unserved destinations which include 58 Airports, 8 Heliports & 2 Water Aerodromes have been connected under the UDAN scheme.
    • With 425 new routes started, UDAN has provided air connectivity to more than 29 States/ UTs across the country.
  • As on 4th August 2022, more than one crore passengers have availed of the benefits of this scheme.


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 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.