UDE DESH KA AAM NAGRIK (UDAN) scheme
The Ministry of Civil Aviation has launched the 5.1 version of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN) to enhance the connectivity to remote areas of the country and achieve last mile connectivity through helicopters.
Objectives of UDAN scheme
- To facilitate / stimulate regional air connectivity by making it affordable to the masses by supporting airline operation through
o Concessions by Central Government, State Governments, and airport operators
o Financial (Viability Gap Funding or VGF) support.
- To provide connectivity to un-served and underserved regions through revival of existing air strips and airports.
o Under-served airports are those which do not have more than 7 flights a week (14 for priority
areas), while unserved airports are those where there are no scheduled commercial flights.
- To generate Employment in the sectors like Airport Operation, Aircraft Maintenance, Air Traffic Control and Technical Staff.
- To promote tourism, along with the tourist spots, route in the northeast have also been connected.
Salient features:
It is a flagship programme of the Regional Connectivity Scheme for upgrading the underserviced air routes.
- The scheme was initiated in 2016 to fulfill the aspirations of the common citizen by following the vision of ‘Ude Desh ka Aam Nagrik’, with an enhanced aviation infrastructure and air connectivity in tier II and tier III cities.
- This Scheme shall be under the purview of the Ministry of Civil Aviation.
- Airports Authority of India (AAI) is designated as implementing agency.
- Salient features of the RCS-UDAN
o Limited government support: The Scheme aimed to achieve its objectives through monetary (VGF) and non-monetary benefits offered to airline operators, provided for a limited duration of 3 years.
✓ Airlines were expected to establish routes and commence commercial operations within this support period.
o Cooperative Federalism: State-level coordination committees were constituted to extend various concessions and benefits to airline operators under the Scheme and to monitor airport infrastructure development.
o Capped airfares: Airfares on the seats on which VGF is provided are capped at affordable rates, as determined by the government.
o Transparent, competitive bidding: The Scheme uses a transparent, two- step bidding process to select the airline operators.
✓ A market-based approach is used to establish the subsidy level within the pre specified VGF caps.
o Technology enabled processes: A web-based mechanism has been adopted to efficiently implement the Scheme.
o Sustainably Funded Scheme: UDAN was a first of-its-kind scheme, which funds regional connectivity through the levy of a small fee on the flights operated on certain categories of domestic routes.
- The scheme has been continuously amended to keep it in line with ever evolving priorities and objectives of the government.
Features of different versions of UDAN:
o UDAN 1.0 (December 2016): Selected unserved and underserved airports across the country were connected through subsidized flights.
o UDAN 2.0 (September 2017): There was enhanced focus on hilly areas, and Northeastern and island states to enhance connectivity to these under connected regions.
o UDAN 3.0 (October 2018): Inclusion of Tourism Routes under UDAN 3 in coordination with the Ministry of Tourism
✓ Inclusion of Seaplanes for connecting Water Aerodromes
✓ International Air Connectivity Scheme was also introduced and incorporated within the broader framework of RCS-UDAN.
o UDAN 4.0 (December 2019): Focus on awarding and operationalizing cancelled routes of past UDAN rounds as well as routes specifically requested by State governments, Ministry of Tourism and Ministry of DONER.
o UDAN 5.0 (April 2023): To further enhance the connectivity to remote and regional areas of the country and achieve last mile connectivity.
✓ Focuses on Category 2(20-80) and Category 3(>80) seats.
✓ The earlier stage length cap of 600 km is waived off and there is no restriction on the distance between the origin and destination of the flight.
✓ Viability gap funding (VGF) to be provided will be capped at 600 km stage length for both Priority and Non-Priority areas which was earlier capped at 500 km.
✓ Airlines would be required to commence operations within 4 months of the award of the route. Earlier this deadline was 6 months.
✓ The same route will not be awarded to a single airline more than once, whether in different networks or in the same network.
✓ Novation process for routes from one operator to another is simplified and incentivized.
https://todaynewslife.com/a-report-on-the-issues-and-providing-recommendations-for-mgnrega/
UDAN Scheme of Ministry of Civil Aviation completes 5 years of success