UDAN Scheme

2023 MAY 25

Preliminary   > Economic Development   >   Indian Economy and Issues   >   Government Schemes

Why in news?

  • Ministry of Civil Aviation has launched (Ude Desh Ka Aam Nagrik) UDAN 5.1

About UDAN scheme:

  • UDAN (Ude Desh ka Aam naagrik) or the Regional Connectivity Scheme seeks to provide connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.

Provisions:

  • Applicable on route                 length between 200-800 kilometers with no lower limit set for hilly, remote, island and security sensitive regions.
  • Reserves a minimum number of UDAN seats i.e. seats at subsidized rates and also cap fare for short distance flights.
  • An airfare cap of Rs. 2,500/hr of flying.
  • Financial stimulus to airlines in the form of concessions from Central and State governments and airport operators.
  • Viability Gap Funding to the interested airlines to kick-off operations from such airports so that the passenger fares are kept affordable.
  • Regional Connectivity Fund would be created to meet the VGF requirements.
  • So far, 766 routes have been sanctioned under the UDAN scheme.
  • The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands.
  • Under UDAN 4, the operation of helicopter and seaplanes is also been incorporated.

Implementing agency:

  • Airports Authority of India (AAI)

About International UDAN:

  • It is a new international air connectivity scheme that plans to connect India‘s smaller cities directly to some key foreign destinations in the neighbourhood.
  • It seeks to make use of the open skies policy that India has with other Asian countries that allows direct and unlimited flights to and from these nations.
  • Unlike in domestic UDAN, it is only the State government that will provide the financial support for flights under international UDAN.

PRACTICE QUESTION:

With reference to the International UDAN scheme, consider the following statements:

1. The aim of the scheme is to connect India’s smaller cities directly to some key foreign destinations in the neighborhood.

2. The centre and state government will provide the financial support for flights under the scheme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer