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UDAN Scheme
Context
The Indian government plans to extend the ‘UDAN’ (Ude Desh ka Aam Nagrik) regional air connectivity scheme for 10 more years.
About UDAN Scheme
- Launched in: 2016
- The Regional Connectivity Scheme (RCS)-UDAN (Ude Desh Ka Aam Naagrik)is a regional connectivity scheme.
- It is a vital component of India's National Civil Aviation Policy (NCAP) 2016, launched by the Ministry of Civil Aviation (MoCA) in 2016, with a 10-year vision.
- The Centre’s UDAN (Ude Desh ka Aam Nagrik) scheme aimed at enhancing regional air connectivity and making flying more affordable was introduced in 2016 for 10 years.
- The UDAN scheme aims to establish air connectivity in underserved regional areas.
- The Scheme offers financial incentives to selected airlines, comprising concessions from central and state governments and airport operators.
- The government, under the scheme, provides financial assistance to selected airline operators through Viability Gap Funding (VGF).
- Notably, the scheme was initially launched for the period of 10 years, and now the government intends to extend this for 10 more years.
- Implementing Agency: Airport Authority of India (AAI)
- Progress so far:
- Under UDAN, 601 routes and 86 airports have been made operational, serving over 14.4 million passengers thus far.
- Notably, the first flight under ‘UDAN’ scheme was inaugurated by Prime Minister Narendra Modi on April 27, 2017. This was from Shimla to Delhi.
- The scheme aims to provide opportunities to small regional airlines to scale up their businesses.
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