UDAN Scheme Current Affairs

UDAN Phase-II: 325 routes awarded; 40% for North East, hills

The Union Ministry of Civil Aviation has awarded 325 air routes under the second phase of government’s flagship UDAN (Ude Desh ka Aam naagrik) regional connectivity scheme. Around 40% or 129 of 325 air routes were awarded to newly created category of ‘priority areas’ that include Jammu and Kashmir, Northeastern and hill states, Andaman and Nicobar Islands and Lakshadweep Islands,

Key Facts

The routes under phase-II were awarded to 15 airlines and helicopter operators after bidding process. These include major domestic airlines such as SpiceJet, IndiGo, Jet Airways and Air India subsidiary Alliance Air and four helicopter operators — Heligo Charters, Heritage Aviation, Pawan Hans, and Skyone Airways

Airports to be connected under phase-II: Total 78 airports i.e. 36 served airports, 13 underserved airports and 29 unserved airports will be connected. In addition, 31 helipads/ heliports will be connected through Helicopters in priority areas.

Viability Gap Funding (VGF) Outflow: These proposed routes will get VGF estimated at Rs. 487 crores per annum for fixed wing operations and Rs. 130 crores for Helicopter operations per annum in the Priority areas. The government provides VGF or subsidy for 50% of seats set aside for being offered at discounted rates by airlines and all seats up to 13 passenger seats for helicopters.

UDAN (Ude Desh ka Aam naagrik) Scheme

The UDAN RCS (Regional Connectivity Scheme) was launched in October 2016 to develop the regional aviation market. It is vital component of the National Civil Aviation Policy (NCAP), 2016.

It also aims to make flying affordable by providing connectivity to un-served and under-served airports of the country through revival of existing airstrips and airports so that persons in regional towns are able to take affordable flights.

It is applicable on flights covering distance between 200 km and 800 km with no lower limit set for hilly, remote, island and security sensitive regions. It seeks to reserve a minimum number of UDAN seats i.e. seats at subsidized rates and also cap fare for short distance flights. It has unique market-based model to develop regional connectivity. It has Viability Gap Funding (VDF) mechanism to meet the VGF requirements under the scheme. Airports Authority of India (AAI) is implementing agency of the scheme.

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Government eases norms under UDAN Scheme

The Union Civil Aviation Ministry has eased several norms of Ude Desh Ka Aam Nagrik (UDAN), a flagship regional flying scheme to attract more airlines and helicopter operators to participate in regional connectivity scheme (RCS).

The new norms were announced when the process for second round of bidding for the RCS were announced.  .  The winners of the second round of bidding will be announced by November 2017.

Key Facts

The relaxations of the norms include dilution of the exclusivity clause mandating that only one airline may fly on one route in the initial years. It will allow selected airline operator of a particular route may issue no-objection certificate (NOC) to other airlines who want to operate on the selected RCS route.

The norms restricting two airports in close proximity from participating in the bidding also has been relaxed. It will allow routes with a stage length less than 150 km for operations through fixed wing aircraft.

About Ude Desh Ka Aam Nagrik (UDAN) Scheme

The UDAN Scheme aims at providing connectivity to un-served and under-served airports of the country through revival of existing airstrips and airports. It aims to develop the regional aviation market and make flying affordable. It is applicable on flights which cover between 200 km and 800 km. The distance limit is lower limit for hilly, remote, island and security sensitive regions. It reserves minimum number of UDAN seats i.e. seats at subsidized rates and also cap the fare for short distance flights. It has a unique market-based model to develop regional connectivity.

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