UDAN scheme: Relevance
- GS 3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
UDAN scheme: Context
- Recently, Ministry of Civil Aviation has flagged off 6 routes, expanding the aerial connectivity of North-East India.
UDAN scheme: Key points
- UDAN scheme full form: Ude Desh Ka Aam Naagrik is a Regional Connectivity Scheme (RCS) to ensure affordability, connectivity, growth and development.
- It provides a win-win situation for all stakeholders – citizens would get the benefit of affordability, connectivity and more jobs.
- The scheme was launched in 2016, and would be in operation for a period of 10 years.
UDAN scheme benefits
- Central Government would provide concessions in the form of reduced excise duty, service tax, and flexibility of code sharing at the RCS (UDAN) airports.
- State governments will have to lower the GST on ATF to 1% or less, besides providing security and fire services free of cost and electricity, water and other utilities at substantially concessional rates.
- A Regional Connectivity Fund would be created to meet the viability gap funding requirements under the scheme. The RCF levy per departure will be applied to certain domestic flights.
- The partner State Governments (other than North Eastern States and Union Territories where contribution will be 10 %) would contribute a 20% share to this fund.
- Under UDAN 1.0, 5 airlines companies were awarded 128 flight routes to 70 airports that includes 36 newly made operational airports.
- MoCA in 2018 had 73 underserved and unserved
- Helipads, for the first time, was connected under this phase.
- MoCA coordinated with Ministry of Tourism to include tourism routes.
- Initiatives were taken to include seaplanes to connect water aerodromes.
- Steps were taken to connect North-Eastern region under the scheme.
- Under this phase, a total of 78 additional UDAN scheme airports routes were approved.
- Focus was more on boosting connectivity in the North East states.
- Kavaratti, Agatti, and Minicoy islands of Lakshadweep was to be connected by the new routes of UDAN 4.0.
- This phase focussed on connecting smaller airports.
- Also, new routes proposed under Sagaramala Seaplane Services.
- Krishi Udan was launched by the Ministry of Civil Aviation on international and national routes.
- This scheme was intended to help improve value realisation on agricultural products, especially in the north-east and tribal districts.
UDAN scheme under which ministry?
Ministry of Civil Aviation
What is the UDAN flight price?
For 50% of the seats of flights under UDAN scheme, the fare cap will be Rs 2,500, and the rest will be market-based pricing.