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UDAN (Ude Desh ka Aam Nagrik) UPSC NOTE

 


  • The scheme was launched by the Ministry of Civil Aviation for regional airport development and regional connectivity enhancement.

  • It is a part of the National Civil Aviation Policy 2016.

  • The scheme is applicable for a period of 10 years.

Objectives:

  • Improve the air connectivity to remote and regional areas of India.

  • Development of remote areas and enhancing trade and commerce and tourism expansion.

  • Enable common people to access air travel with affordable rates.

  • Employment creation in the aviation sector.

  • Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500 per hour of flight.

  • A financial stimulus in the form of concessions from Central and State governments and airport operators and

  • Viability Gap Funding (VGF) – A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.

  • Regional Connectivity Fund (RCF) was created to meet the viability gap funding requirements under the scheme.

  • The partner State Governments (other than UTs and NER states where contribution will be 10%) would contribute a 20% share to this fund.

Current Status

  • A total of 225 routes have ceased operations under a government support scheme.

  • Out of these, 128 routes shut down before completing the mandatory three-year period under the scheme.

  • Airlines found 70 of these routes to be commercially unviable despite receiving subsidies.

  • The remaining 58 routes were cancelled due to reasons such as non-compliance by the airline operator, airlines surrendering routes, or airline companies shutting down.

  • Additionally, 97 routes shut down after completing the three-year period during which the government provided support.

  • The objective of the scheme was to enable airlines to sustain operations on their own after the three-year period without government support.

  • However, out of the 155 routes that completed the three-year period, only 58 routes have managed to survive without government assistance.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: UDAN (Ude Desh ka Aam Nagrik) UPSC NOTE
UDAN (Ude Desh ka Aam Nagrik) UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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