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Modified UDAN Scheme : In News

Kumari Sonali

Modified UDAN Scheme: In News

The Prime Minister of India has recently inaugurated the new terminal building at Jodhpur airport and launched the modified UDAN Scheme.

  • The scheme aims to accelerate the next phase of aviation-led development.
  • A key emphasis is on the development of 100 aerodromes from existing unserved airstrips to expand aviation infrastructure across the country.
  • The scheme has been earmarked for Operations and Maintenance (O&M) support to ensure the viability of regional airports during their initial years of operation.
  • Additionally, an investment will fund the creation of modern helipads, and a continued Viability Gap Funding for airlines to sustain regional airline operations.
  • The scheme promotes the induction of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, for operations in underserved and remote regions.
  • The Ude Desh ka Aam Nagrik (UDAN) scheme is a Regional Connectivity Scheme (RCS) launched in October 2016 by the Government of India to enhance air connectivity to underserved and unserved regions.
  • Objectives:
    • Improve regional connectivity across Tier-2 and Tier-3 cities.
    • Make air travel affordable for common citizens.
    • Promote balanced regional development.
    • Enhance the infrastructure utilisation of unused and underutilised airports.
  • The mission has two parts.
    • First, make air travel affordable on short regional sectors where train journeys take 10-18 hours.
    • Second, revive unserved and underserved airports — places that had runways but no scheduled commercial flights.
  • The first UDAN flight took off on 27 April 2017, connecting Shimla to Delhi.
  • Key Features:
    • Airlines are selected through a competitive bidding mechanism.
    • Viability Gap Funding (VGF) is provided to airlines to operate on less profitable routes.
    • The Airports Authority of India has also waived off the airport fee for the same.
    • At the same time, the state governments are also providing security, electricity, and fire-fighting facilities free of cost.
    • 50% of seats are offered at a capped fare of around Rs. 2,500 per hour of flight.
    • Focus on connecting remote, hilly, and island regions.
  • Funding Mechanism:
    • Initially funded through a Regional Connectivity Scheme levy imposed on flights operating on major routes.
    • The levy subsidised airlines operating on regional routes.
    • The Ministry of Civil Aviation runs it through the Airports Authority of India (AAI), which acts as the implementing agency for bidding, monitoring, and viability gap funding payouts to airlines.