UDAN SCHEME

UDAN Scheme (Ude Desh ka Aam Naagrik)

  • Launched: 2016
  • Objective: Enhance regional connectivity by making air travel affordable.
  • Implementation: Ministry of Civil Aviation through a transparent bidding process.
  • Key Features:
    • Provides viability gap funding (VGF) to airlines for unserved and underserved routes.
    • Focus on Tier II and Tier III cities.
    • Affordable airfares with a cap on ticket prices for specific routes.

Working of the Scheme:

  • Focuses on unserved and underserved airports (those with less than seven flights per week).
  • Routes are awarded through a transparent bidding process.
  • Airlines receive VGF for three years to help establish viable routes.
  • The scheme also aims to decongest major airports by increasing activity at smaller airports.

Monitoring and Regulation:

  • The Directorate General of Civil Aviation (DGCA) monitors airfare through a tariff monitoring unit.
  • The government intervenes during events like Maha Kumbh to prevent exorbitant fares.
  • The Ministry of Civil Aviation is promoting increased aircraft availability and encouraging new airlines to control airfare.

Recent Developments:

  • Expansion Plan: Government plans to add 120 new locations and connect 4 crore people through the scheme over the next 10 years.
  • Achievements:
    • Connected 1.5 crore people in the past decade.
    • Over 327 companies have participated in the scheme.
    • Extended for another 10 years due to its success (as announced in the 2024-25 Union Budget).

Significance:

  • Enhances regional connectivity and accessibility.
  • Reduces congestion at major airports.
  • Promotes economic development by improving air transport infrastructure.
  • Supports the government’s vision of affordable and accessible air travel for all.

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