UDAN: Regional Connectivity Scheme (Yojana > Ed_June_2017)

By Bharat Choudhary -
UDAN (Ude Desh ka Aam Naagrik) is First-of-its-kind Scheme Globally to Stimulate Regional Connectivity Through a Market-Based Mechanism.

Scheme inaugurated by Prime Minister Narendra Modi in Shimla (HP) on April 27, 2017, key component of 'National Civil Aviation Policy' (15 June 2016). He also inaugurated flights between Kadpa - Hyderabad & Nanded - Hyderabad.
It is a regional airport development and 'Regional Connectivity Scheme (RCS)' of the Government of India, with the objective of 'Let the common citizen of the country fly', aimed at making air travel affordable and widespread, enabling inclusive job growth and infrastructure development of all regions and states of India.

Click below link to Download file in PDF Format

Key Facts:
  • Scheme by Ministry of Civil Aviation
  • Implementing agency is Airport Authority of India (AAI)
  • Will connect 70 airports (of tier 2 & tier 3 cities) and 128 routes in country
Expected Benefits:
  • will spur economics growth in hinderland
  • will provide affordable air travel for the cast middle class
  • will end monopoly of the elite air services in country
Provisions: 
  • Fixed wing aircraft: price of travel of approx. 500 km or for 60 minute will be capped to 2500. Service provider will have to reserve 50% of flight capacity for RCS (Regional Connectivity Scheme) - Min 9 to Max 40 Seats
*It is applicable on flights which cover between 200 km and 800 km.
  • Helicopter: 30 minute of ride will be capped. Reservation for 5 to 13 seats for RCS.

Challenges & Solution:
  • Major challenge will be viability of funds to reduce cost of operations.
    • Solution: concessions in form of VGF (Viability Gap Fund) - It is a grant to support projects that are economically justified but not financially viable.
      • It was launched in 2004 by Government of India to support force multiplying projects under Public-Prive-Partnership (PPP) mode.
      • Available only for infrastructure projects. 
      • North-Eastern states will provide 10% where other states will provide 20% share.
  • Service providers will benefit as there will not be any airport charges and will have 3-year exclusivity on the routes.
  • RCS subsidy will also be raised by levying a cess, which will be revised periodically, on the flight between main trunk routes connecting major cities. 


ROUTES COVERED (MAP):  

Image Courtesy: THE INDIAN EXPRESS

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