UDAN scheme

Why in news?

• 78 new routes under the 4th round of Regional Connectivity Scheme (RCS)- UDAN have been approved following the three successful rounds of bidding by the Ministry of Civil Aviation.
• This will further enhance the connectivity to remote and regional areas of the country.
• The North Eastern Region, Hilly States and Islands have been given priority in the approval process for the new routes.

On 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.

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