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February 25, 2025 at 02:02 PM
🔆 UDAN – Regional Connectivity Scheme (RCS)
📍 Why in the News?
âś… CAG Audit Report on the Regional Connectivity Scheme (UDAN) was presented in Parliament.
📍 Quick Facts
âś… Purpose: Enable air operations on underserved/unserved routes, promote balanced regional growth, and make flying affordable.
âś… Type: Central Sector Scheme
âś… Support to Airlines: Concessions & Viability Gap Funding (VGF)
âś… Tenure: 10 years
📍 Objective
âś… Strengthen aviation infrastructure and enhance air connectivity in Tier II & Tier III cities.
📍 Salient Features
âś… Background: Launched under National Civil Aviation Policy (NCAP) 2016.
âś… Fiscal support & infrastructure development for regional air connectivity.
âś… Airlines to provide 50% of seats at subsidized rates.
✅ Airfare capped at ₹2500 for 500-600 km per seat (subject to indexation).
âś… Regional Connectivity Fund (RCF): Self-financing mechanism via a levy on domestic flights.
âś… Demand & Market-Based Model:
RCS available only in States & airports providing concessions.
State governments to provide free security, utilities at concessional rates, & free land for RCS airports.
âś… Funding Support: 80% VGF by Centre, 20% by States (10% for NE States, UK, HP, UTs).
âś… Flexible Route Selection: Airlines propose regional routes & seek VGF.
📍 Key Initiatives Under UDAN
✅ Lifeline UDAN – Assisted India’s COVID-19 fight.
✅ Krishi UDAN – Helped farmers transport agricultural produce, benefiting northeast & tribal districts.
✅ International Air Connectivity Scheme (IACS) – Aided State Governments in international airport connectivity.
#government_schemes
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