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Ministry of Civil Aviation

UDAN (Ude Desh Ka Aam Naagrik)

Posted On: 02 NOV 2021 12:16 AM

1. RCS-UDAN - Regional Connectivity Scheme –UdeDeshkaAamNaagrikunder the National Civil Aviation Policy 2016 was launched on October 21, 2016.

2. Need: India is the world’s third-largest market in the aviation sector. As per a study by the Ministry of Civil Aviation, 65 per cent air connectivity and 61per cent traffic is focussed only in the six metros.

3. Objective: The objective of the UDAN Scheme is to connect small and medium cities with big cities through air service. It seeks to fulfil the common citizen’s dream of air travel.

4. Scheme:

  • Airfare for a one-hour journey by a 'fixed wing' aircraft or half an hour's journey by a helicopter for about 500 km has been fixed at Rs. 2500.
  • Aviation companies bid for air routes. The company that asks for the lowest subsidy is awarded the contract.
  • Under this fare for each flight, the airline has to book half, or a minimum of 9, or a maximum of 40 seats.

5. Target: To enable One Crore passengers to travel by air every year.

6. Facilities to carriers:

  • The government compensates in the form of Viability Gap Funding (VGF) to airlines for losses due to low fares.
  • Airport Authority of India has also waived off the airport fee for the same.
  • Security, electricity and fire-fighting facilities free of cost.

 

7. First flight: The first flight from Delhi to Shimla under the UDAN Scheme was flagged off by PM NarendraModi in April 2017.

8. Opportunity:

  1. Employment: In the airline industry, a ratio of 100 is assumed. So one additional aircraft will employ approximately 100 people.

 

  1. Tourism: 46 important tourist spots have been selected under the UDAN scheme to promote tourism. These include famous cities like Udaipur, Varanasi & Goa and less explored places like Agartala, Aizawl, Shillong and others in the north-east. The water aerodrome has begun at Sabarmati River front, Statue of Unity in Ahmedabad.

 

  1. Business: According to a report of the International Civil Aviation Organization, a better air service provides a three per cent growth in the economy and grows employment by six per cent.

 

9. Outcomes: Under the UDAN Scheme, approval has been given to four phases so far– UDAN 1, UDAN 2, UDAN 3 and UDAN 4.

  • 98 airports, 33 heliports and 12 aerodromes have been selected.
  • Air service is being provided on more than 359 routes on 59 airports along with 5 heliports and 2 aerodromes.
  • Helicopter and Sea-Plane service is also included in UDAN. 
  • 70% air traffic load has shifted from 6 metros to small and medium cities.
  • Operating cost of airlines has come down by 12-13%.
  • Domestic air traffic has seen a 5% increase in passenger numbers from smaller cities.

 

10.       Facts and Figures:

  • 132800 flights completed till 28 June 2021.
  • Subsidy worth Rs. 1228 crores given to enable passengers to get tickets at cheaper rates.
  • Almost 60 lakh people have air travelled at affordable rates under UDAN scheme.

11.       Way forward:

  • 1000 new routes
  • 100 new airports
  • 10 water aerodromes for 28 heliports and sea-planes
  • 10 airports for North-Eastern states
  • KrishiUdan Scheme for air transportation of agricultural products
  • More than 3300 cities of the country to get connected to each other through air routes, of which 150 have already been connected so far

 

Source: PIB e-booklet on UDAN Scheme

 

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