About The UDAN 5.0 scheme

Context:

Out of the 479 airport routes that were revived by the Union Government, under the Regional Connectivity Scheme – UDAN, 225 have ceased operations.

Relevance:

GS II: Government policies and Interventions

Dimensions of the Article:

1. About Ude Desh Ka Aam Naagrik (UDAN)
2. Different Phases of the Scheme:
3. Objectives
4. Performance of the UDAN Scheme: Enhancing Air Connectivity

About Ude Desh Ka Aam Naagrik (UDAN):

Nodal:  Ministry of Civil Aviation (MoCA)

• It is a regional airport development and “Regional Connectivity Scheme” (RCS) of the Union Government of India.
• The scheme envisages providing connectivity to un-served and under-served airports of the country through the revival of existing airstrips and airports.

Funding Pattern for the Scheme

Concession by Central Government, State Governments/UTs, and Airport Operators:

• The scheme aims to reduce the cost of operations on regional routes.
• The Central Government, State Governments/UTs, and airport operators will provide concessions to airlines operating on these routes.

Financial Viability Gap Funding (VGF) Support:

• VGF support will be provided to bridge the gap, if any, between the cost of airline operations and expected revenues on regional routes.
• The VGF will be a joint effort between the Ministry of Civil Aviation and the respective State Government.

VGF Sharing Ratios:

• The VGF support will be shared between the Ministry of Civil Aviation and the State Government in a ratio of 80:20.
• For States in the North-Eastern region and Union Territories, the VGF sharing ratio will be 90:10.

Different Phases of the Scheme:

UDAN 1.0

• Under this phase, 5 airlines companies were awarded 128 flight routes to 70 airports (including 36 newly made operational airports)

UDAN 2.0

• In 2018, the Ministry of Civil Aviation announced 73 underserved and unserved airports.
• For the first time, helipads were also connected under phase 2 of UDAN scheme.

UDAN 3.0

Key Features of UDAN 3 included:

• Inclusion of Tourism Routes under UDAN 3 in coordination with the Ministry of Tourism.
• Inclusion of Seaplanes for connecting Water Aerodromes.
• Bringing in a number of routes in the North-East Region under the ambit of UDAN.

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 helicopter and seaplanes is also been incorporated.

UDAN 5.0 Scheme

 The 5th round of the scheme has introduced several changes, including:

• Focus on Category-2 and Category-3: The current round of the scheme is targeted towards Category-2 (20-80 seats) and Category-3 (>80 seats) aircraft.
• No restriction on stage length: The earlier cap of 600 km on stage length has been waived off, allowing airlines to operate flights on any distance between the origin and destination.
• Increased Viability Gap Funding (VGF) cap: The VGF to be provided will be capped at 600 km stage length for both Priority and Non-Priority areas, which was earlier capped at 500 km.
• Shorter deadline for commencement of operations: Airlines would be required to commence operations within 4 months of the award of the route. Earlier this deadline was 6 months.

Objective:

• To create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns.
• To stimulate regional air connectivity and making air travel affordable to the masses.
• The scheme envisages providing connectivity to un-served and underserved airports of the country through the revival of existing air-strips and airports. The scheme is operational for a period of 10 years.

• UDAN is a market driven ongoing scheme where bidding rounds are conducted periodically for covering more destinations/stations and routes under the scheme.
• Interested airlines assess the demand on particular routes connecting these airports and submit their proposals at the time of bidding.

Performance of the UDAN Scheme

Growth in Connected Airports:

• Before the launch of the UDAN Scheme, India had only 76 airports connected by scheduled commercial flights since 1911.
• Since 2014, the number of operational airports has significantly increased to 141, demonstrating substantial growth in air connectivity.

Expansion of Routes:

• The UDAN Scheme has initiated 479 new routes, creating a network that reaches various regions across the country.
• As a result, air connectivity has been extended to more than 29 States and Union Territories, connecting previously underserved areas.

Passenger Outreach:

• The UDAN Scheme has had a notable impact on passenger accessibility and convenience.
• Over one crore passengers have availed the benefits of this scheme, enjoying improved air travel opportunities and enhanced connectivity.

-Source: The Hindu