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|Udaan Scheme PDF
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|Jul 20, 2022
Udaan Scheme Overview
Ude Desh ka Aam Naagrik, known by its acronym UDAN is a regional airport development program of the Government of India and part of the Regional Connectivity Scheme of upgrading under-serviced air routes. Its goal is to make air travel affordable and improve economic development in India.
The objective of UDAN scheme is to connect small and medium cities with big cities through air service. Under the UDAN scheme, the 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 Ministry of civil Aviation(MoCA), Government of India released the national Civil Aviation Policy 2016 (NCAP 2016). One of the objectives of NCAP 2016 is to enhance regional connectivity through fiscal support and infrastructure development.
- As the Indian economy grows, consumption led growth in populated metros is expected to spill over to hinterland areas. This is also expected to be on account of factors of production becoming costlier in the densely populated metro cities. In this scenario, air connectivity can provide required impetus to the economic growth of the regional centers.
- In this context, one of the key objectives of NCAP 2016 is to establish an integrated eco system which will lead to significant growth of civil aviation sector, which in turn would promote tourism, increase employment and lead to a balanced regional growth.
- The operation of the scheme is proposed to be through a market mechanism where operation will assess demand on routes submit proposals for operating/ providing connectivity on such routes; seek VGF, if any while committing to certain minimum operating conditions and the same shall be finalized in interaction with other market participants as provide for in the scheme.