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UDAN Day: UDAN 4.0 Scheme

UDAN scheme:

The Government of India has identified 21st October as UDAN Day, the day on which the scheme document was first released.

  • The scheme is aimed at enhancing connectivity to remote and regional areas of the country and making air travel affordable.
  • It is a key component of Centre’s National Civil Aviation Policy led by Prime Minister Narendra Modi and launched in June 2016.
  • Under the scheme, nearly half of the seats in Udan flights are offered at subsidised fares, and the participating carriers are provided a certain amount of viability gap funding (VGF) – an amount shared between the Centre and the concerned states.
  • The scheme will be jointly funded by the central government and state governments.
  • The scheme will run for 10 years and can be extended thereafter.

UDAN 4.0:

  • The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands.
  • The airports that had already been developed by Airports Authority of India (AAI) are given higher priority for the award of VGF (Viability Gap Funding) under the Scheme.
  • Under UDAN 4, the operation of helicopters and seaplanes is also been incorporated.

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