UDAN (Ude Desh ka Aam Nagrik) is a pioneering scheme introduced by the Ministry of Civil Aviation in India. Launched as part of the National Civil Aviation Policy 2016, it aims to develop regional airports and enhance connectivity across India. The scheme, which has been in operation for a decade, focuses on boosting air connectivity in remote and regional parts of the country, developing these areas, boosting trade, tourism and creating jobs in the aviation sector.
Key Features of the UDAN Scheme
The UDAN Scheme has several noteworthy features. For example, airlines are mandated to cap fares for 50% of their total seats at Rs. 2,500 per hour of flight. This requirement is met through various forms of assistance, including concessions from Central and State governments, airport operators, and the provision of a Viability Gap Funding (VGF). VGF is a government grant given to airlines to bridge the gap between their operational costs and expected revenue.
The Role and Functioning of the Regional Connectivity Fund (RCF)
A crucial part of the scheme is the Regional Connectivity Fund (RCF), created specifically to meet the VGF requirements under the scheme. Partner State Governments contribute 20% to this fund – with the exception of Union Territory and Northeastern states, where the contribution is 10%.
Previous Phases of the UDAN Scheme
Since launch, the scheme has gone through four phases, each one focusing on different areas. Phase 1 was initiated in 2017 and served as a launchpad for connecting under-visited airports across the country. Later, in 2018, phase 2 was launched to extend air connectivity to even more remote parts of the country. In November 2018, phase 3 was rolled out, with the aim of further enhancing air connectivity to hilly and remote regions. Finally, phase 4, launched in December 2019, focused on connecting islands and other remote areas.
Key Features of UDAN 5.0
The latest, fifth round of UDAN (UDAN 5.0) offers unique features such as focusing on aircraft with a seating capacity exceeding 20 seats. Notably, there is no distance restriction between the origin and destination of the flight. VGF provision has also been modified, with the cap now set at a stage length of 600 km. This is a significant increase from the earlier limit of 500 km.
Achievements under the UDAN Scheme
As per statistics released by the Ministry of Civil Aviation in August 2022, the scheme has successfully provided widespread air connectivity to Tier-2 and Tier-3 cities at affordable rates. A comparison of figures shows that the number of operational airports increased from 74 in 2014 to 141. Additionally, the scheme enabled the connection of 68 underserved destinations, including 58 Airports, 8 Heliports and 2 Water Aerodromes. With the initiation of 425 new routes, UDAN scheme has extended air connectivity to over 29 States/ Union Territories across India. Impressively, over one crore passengers have availed the benefits of this scheme.
UPSC Civil Services Examination Question related to the Article
“Examine the development of Airports in India through joint ventures under Public–Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard? (2017)” Source: PIB