UDAN Scheme UPSC, “Ude Desh ka Aam Nagarik” is the full name of the UDAN initiative. It is a regional connectivity initiative that offers cheaper air travel between the nation’s rural communities. There are 78 new low-cost flight routes in UDAN 4.0. The regional connectivity program would span routes ranging from 200 to 800 kilometers. For mountainous, remote, island, or security-sensitive locations, there is no lower limit.
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What is the UDAN Scheme?
A program called Ude Desh Ka Aam Nagrik, or UDAN, aims to make air travel more affordable for the average person in India’s tier II and III cities. A tenth of the value-added tax (VAT) and service tax will be subject to a 2% excise imposed by the national government. The regional connection program would also provide free code sharing between airports. Additionally, the regional connection scheme would allow airports to share codes freely. Additionally, airports would be able to freely interchange codes under the regional connection plan. The concept would be funded by a fee on specific flights and establish a Regional Connectivity Fund (RCF). States are expected to provide 20% of the funding.
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Objectives of the UDAN Scheme
To encourage regional air connection and reduce the cost of air travel for the common citizen, the Indian government launched the UDAN (Ude Desh ka Aam Nagrik) Scheme, a regional airport development and connectivity effort. The primary objectives are:
- To provide Regional connection: UDAN seeks to provide connection to rural and regional areas by linking unserved and underserved airports.
- To Make Air Travel Affordable: By offering cheap tickets, the initiative hopes to expand the number of passengers by making air travel more affordable for a larger group of individuals.
Components of the UDAN Scheme
Many essential elements make up the UDAN Scheme, which seeks to increase and promote air connectivity while ensuring sustainability and lowering costs. The primary elements consist of:
- By providing financial support to airlines to bridge the gap between operational expenses and projected revenues, the Viability Gap Funding (VGF) mechanism guarantees airline profitability on regional routes.
- Development of Infrastructure To increase accessibility, helipads and regional airports are being constructed and put into operation.
- Subsidized Airfare: UDAN caps the price of a significant portion of seats on its flights, making them affordable for the general public.
- Together, these elements strengthen the regional aviation ecosystem as a whole, promoting connectivity and economic growth.
Provisions of the UDAN Scheme
Important clauses include the construction of regional airport facilities, pricing caps to make travel cheap, and Viability Gap Funding (VGF) to assist airlines.
- Benefitted Airports: By reviving existing airstrips and airports, the UDAN initiative seeks to link underserved and unserved airports.
- Implementing Agency: The Airports Authority of India (AAI) is in charge of carrying out the project.
- Phases of the Bidding By the end of 2018, there will be three separate phases to the bidding process for route awards.
- Route Length Applicable: The program is applicable to routes between 200 and 800 kilometers; there are no lower limits for mountainous, rural, island, or security-sensitive locations.
- Fund Creation: By charging for specific flights, a Regional Connectivity Fund (RCF) will be created to support the project.
- The cost of the flight is Rs. 2,500 for flights that travel about 500 kilometers per hour. Helicopter flights will also be permitted for the first time; a 30-minute ride will cost Rs. 2,500.
- AAI intends to upgrade airport infrastructure by 2019–20 with an investment of Rs. 17,500 crore.
- UDAN ‘Seats and Departures’: Helicopter flights will have a minimum of five seats and a maximum of thirteen.
Salient features of the UDAN Scheme
The UDAN Scheme incorporates a number of unique elements to guarantee its efficacy and sustainability. Among the essential characteristics are:
- Affordable Airfare Cap: Passengers can travel more affordably by selecting seats on each UDAN aircraft that are available at capped rates.
- Airline Subsidies: Viability Gap Funding (VGF) is available to airlines to make up for losses on underperforming regional routes.
- Route Network Development: Connect underserved and unserved areas, paying particular attention to challenging terrains such as the islands, hill states, and northeastern states.
- Public-Private Partnership: Encourages private businesses to build rural airports and airstrips, enhancing infrastructure and services in the process.
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Various Phases of the UDAN Scheme UPSC
Each phase of the UDAN Scheme’s implementation intends to expand the scope and reach of regional connectivity. The stages include:
- UDAN 2.0: The Ministry of Civil Aviation designated 73 unserved and underserved airports in 2018.
- UDAN 3.0: In partnership with the Ministry of Tourism, UDAN 3 incorporates tourism routes.
- UDAN 4.0: The Ude Desh Ka Aam Nagrik (UDAN) fourth phase of the Regional Connectivity Scheme (RCS) allowed 78 new routes in 2020 to improve connection to the country’s remote and rural areas.
- Connecting smaller airports and particular helicopter and seaplane links are the main concerns of UDAN 4.1. The Ministry of Ports, Shipping, and Waterways is working with possible airline operators on the massive Sagarmala Seaplane Services project.
- UDAN 5.1: The government introduced UDAN 5.1 to use helicopters to provide connectivity in distant areas of India.
Funding Structure
Through a variety of financial channels, the UDAN Scheme’s funding structure aims to make air travel in rural places sustainable and feasible. Among the components are:
- The federal and state governments support the Viability Gap Funding (VGF), which is essential for helping airlines operating on regional routes close the financial gap.
- Airport Development and Operational Subsidies: Money set aside for the modernization and opening of airports in rural and regional locations.
- State Government Contributions: To improve regional airport infrastructure and support services, state governments provide extra money.
Achievements of the UDAN Scheme UPSC
Among the notable accomplishments are the creation of many unserved and underserved airports, the operationalization of multiple new routes, and a notable rise in regional air traffic.
- With reasonably priced flights and a revolution in travel, the UDAN initiative has effectively improved air connection to Tier-2 and Tier-3 cities.
- In 2014, there were 74 airports in service; now, there are 141.
- As part of the UDAN strategy, 68 underserved/unserved locations have been linked, including 58 airports, 8 heliports, and 2 water aerodromes.
- Approximately one crore passengers have benefited from this project.
Significance of the UDAN Scheme UPSC
Enhancing regional connections, encouraging inclusive economic growth, and lowering the cost of air travel for the average person are all made possible by the UDAN Scheme.
- Passengers can travel to and from distant airports including Hubballi and Baldota in Karnataka, Burnpur in West Bengal, Darbhanga in Bihar, Hissar in Haryana, and others via the Ude Desh Ka Aam Nagrik (UDAN) Scheme.
- By enabling small and new operators to take part in the swift growth of passenger traffic, the UDAN project benefits India’s aviation industry.
- Airlines must vie for the sole right to operate on the regional routes that the program has made available.
- It is also anticipated that strong regional ties would strengthen the economies of the rural regions highlighted on the nation’s new aviation map.
- Although the plan’s goal It also reduce travel expenses in order to solve the problem of phantom airports.
Challenges Associated with the UDAN Scheme
Among the challenges facing the UDAN Scheme are limited passenger demand on regional flights, airline financial viability issues, and infrastructural constraints at smaller airports.
- The poor financial health of a number of smaller regional airlines has hampered the strategy.
- The routes aren’t even close to being operational, let alone practicable, because they were sanctioned under UDAN.
- There should be more discussion on the reality that many gamers only have one or two planes. These lesser players must be able to access new aircraft.
- The airline operator’s demand assessment for that particular route or route is the basis for UDAN bids.
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Faq’s
Q. Complete the UDAN Scheme UPSC plan.
Ans: The UDAN scheme’s full name is Ude Desh ka Aam Nagrik.
Q. When did the UDAN program start?
Ans: April 2017 saw the start of the UDAN program.
Q. What is the purpose of the UDAN scheme?
Ans: Regional airport development in India and regional air connectivity are related to the UDAN strategy.
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