New Delhi: The Central Government’s UDAN (UDAN, meaning Ude Desh Ka Aam Naagrik) scheme has played a significant role in making air travel affordable for the common man. Launched on October 21, 2016, the scheme has carried over 14.9 million passengers so far. This information was provided in a factsheet released by the Ministry of Civil Aviation on Tuesday.
According to the factsheet, 625 UDAN routes have been launched across the country under the scheme, connecting 90 airports, including two water aerodromes and 15 heliports. This initiative has helped connect remote areas to the country’s aviation network, boost local economies, encourage tourism, and create employment opportunities.
According to the Ministry, UDAN has strengthened regional tourism, access to healthcare services, and trade. This has also boosted economic development in Tier-2 and Tier-3 cities.
Target to connect 120 destinations in the new phase of the UDAN scheme
Building on the achievements of the existing scheme, the government is working on a new and revised version of the scheme. The goal is to connect 120 new destinations to the air network over the next 10 years and provide affordable air travel to 40 million additional passengers.
The scheme will focus on improving air connectivity in remote, hilly, and aspirational districts. Special priority will be given to areas in Northeast India. In addition, special assistance will be provided for the development of helipads and small airports.
Airport network more than doubles in a decade
The number of airports in India has increased significantly over the past decade. In 2014, the country had 74 airports, which is projected to increase to 159 by 2024.
The government has also committed to developing 50 new airports over the next five years. This plan includes the construction of new greenfield airports in Bihar, the expansion of Patna Airport, and the development of a brownfield airport in Bihta.
These projects aim to meet the growing demand for air travel in the future and accelerate regional development.
₹4,023 crore assistance to enhance regional air connectivity
Under the UDAN scheme, several financial incentives have been provided to promote air services in regions with limited air connectivity. According to the ministry’s factsheet, Viability Gap Funding (VGF) worth ₹4,023.37 crore has been disbursed so far to promote regional air connectivity.
Landing and parking fees have been waived for flights operated under the Regional Connectivity Scheme (RCS). The Airports Authority of India (AAI) also waives the Terminal Navigation Landing Charge (TNLC) on these flights. Additionally, a concessional Route Navigation and Facilitation Charge (RNFC) is applicable on these flights.
Under the scheme, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is limited to 2 percent for the first three years. Airlines are also encouraged to enter into code-sharing agreements to expand their services.
State governments have committed to reducing VAT on ATF to 1 percent or less for 10 years. Additionally, provisions have been made to provide security, firefighting, and other essential services at concessional rates.
According to the ministry’s factsheet, this arrangement, developed in collaboration with the central and state governments, has created a favorable environment for airlines to operate services in areas that have long been neglected in terms of air connectivity.UDAN Scheme Completes 10 Years, Over 1.49 Crore Passengers Benefit from Affordable Air Travel