About The UDAN 5.0 scheme

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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:

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.

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.

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.

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.

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