What is UDAN (Ude Desh ka Aam Nagrik) Scheme?
UDAN, short for ‘Ude Desh ka Aam Nagrik’ or ‘Let the common citizen of the country fly,’ is a flagship scheme of the Government of India aimed at making air travel affordable and accessible to the masses. The scheme is a part of the National Civil Aviation Policy (NCAP) announced in 2016 and has been launched with the objective of promoting regional connectivity by providing air transport services to underserved and unserved regions of the country. Under UDAN, the government provides financial incentives to airlines and airport operators to start operations in such areas and ensure that air travel becomes a viable option for the common man.
Objectives
The government has recently launched UDAN 5.0, the fifth round of the Regional Connectivity Scheme, aimed at enhancing air connectivity to remote and regional areas of India, promoting trade and commerce, and expanding tourism. The scheme intends to make air travel accessible to common people by offering affordable rates and creating employment opportunities in the aviation sector.
Key Features:
- To achieve this, airlines must cap airfares for half of the total seats at Rs. 2,500 per hour of flight.
- The government will provide financial stimulus in the form of concessions from Central and State governments, airport operators, and Viability Gap Funding (VGF), which is a grant given to the airlines to bridge the gap between the cost of operations and expected revenue.
- The Regional Connectivity Fund (RCF) was established to meet the viability gap funding requirements under the scheme.
- The partner state governments, excluding UTs and NER states where the contribution will be 10%, will contribute a 20% share to this fund.
Phases of the Scheme:
- Phase 1 - Connecting Underserved and Unserved Airports
The first phase of the UDAN scheme was launched in 2017, with the primary objective of connecting underserved and unserved airports in the country. The scheme aimed to provide air connectivity to 70 airports, out of which 31 were unserved and 12 were underserved. The scheme was successful in connecting remote areas like Shimla, Nanded, and Kadapa, among others, to major cities.
- Phase 2 - Expanding Air Connectivity to Remote Areas
Building on the success of Phase 1, the government launched Phase 2 of the UDAN scheme in 2018. The focus of this phase was to expand air connectivity to more remote and inaccessible parts of the country. The scheme aimed to connect 43 airports, out of which 24 were unserved and 19 were underserved. The UDAN scheme played a crucial role in connecting places like Kargil, Pasighat, and Pakyong, which were previously not accessible by air.
- Phase 3 - Enhancing Air Connectivity to Hilly and Remote Regions
In November 2018, the government launched Phase 3 of the UDAN scheme, with the objective of enhancing air connectivity to hilly and remote regions of the country. The scheme aimed to connect 37 airports, out of which 12 were unserved and 25 were underserved. This phase focused on connecting airports in the northeastern states, Jammu & Kashmir, and Himachal Pradesh. The UDAN scheme has played a vital role in boosting tourism and promoting economic growth in these areas.
- Phase 4 - Connecting Islands and Other Remote Areas
The fourth and most recent phase of the UDAN scheme was launched in December 2019. The focus of this phase was on connecting islands and other remote areas of the country. The scheme aimed to connect 29 airports, out of which 12 were underserved and 17 were unserved. The UDAN scheme has played a crucial role in connecting remote islands like Andaman and Nicobar, Lakshadweep, and the North-Eastern region.
Key Features of UDAN 5.0: Making Air Travel More Accessible and Efficient
This new version, UDAN 5.0, comes with some exciting features that aim to make air travel more accessible and efficient for people across the country. Let's take a closer look at some of the key features of UDAN 5.0.
- Category-2 and Category-3 Aircrafts
UDAN 5.0 focuses on Category-2 (20-80 seats) and Category-3 (>80 seats) aircrafts, which will help in expanding regional air connectivity. With the use of these aircraft, UDAN 5.0 aims to make air travel more accessible and affordable for people living in remote areas of the country.
- No Distance Restrictions
Unlike previous versions, UDAN 5.0 does not have any restriction on the distance between the origin and the destination of the flight. This means that airlines can now operate flights to even the most remote parts of the country, making air travel more convenient for people living in such areas.
- Increased VGF Capped at 600 km
UDAN 5.0 offers an increased viability gap funding (VGF) capped at 600 km stage length for both Priority and Non-Priority areas, which was earlier capped at 500 km. This funding will help airlines to operate flights in underserved regions and make air travel more affordable for passengers.
- No Predetermined Routes
UDAN 5.0 does not offer predetermined routes to airlines. Instead, it only considers network and individual route proposals proposed by airlines. This will give airlines the flexibility to operate flights on routes they find feasible and profitable, making air travel more efficient.
- Exclusive Routes
UDAN 5.0 ensures that the same route is not awarded to a single airline more than once, whether in different networks or in the same network. This feature aims to prevent exploitation of the monopoly on a route and promote fair competition among airlines.
- Withdrawal of Exclusivity
If the average quarterly passenger load factor (PLF) is higher than 75% for four continuous quarters, the exclusivity of operation provided to an airline will be withdrawn. This measure has been taken to encourage airlines to operate efficiently and not rely on exclusivity for profits.
- Simplified and Incentivized Novation Process
UDAN 5.0 has simplified and incentivized the novation process for routes from one operator to another. Novation is the process of substituting an existing contract with a replacement contract, where the contracting parties reach a consensus. This feature aims to ensure the smooth operation of flights and avoid any disruptions caused by contract disputes.
Achievements of UDAN Scheme
The UDAN (Ude Desh ka Aam Nagrik) Scheme, has brought about a significant transformation in the country's aviation sector. The scheme's primary objective was to provide affordable air travel to the masses and enhance air connectivity to remote and underdeveloped regions of the country. The achievements of the UDAN scheme, as per the data released in Aug 2022 by the Ministry of Civil Aviation.
Increased Air Connectivity to Tier-2 and Tier-3 Cities
The UDAN scheme has successfully bridged the gap in air connectivity to tier-2 and tier-3 cities in India. Earlier, these regions had limited air connectivity, and airfares were exorbitant. With the UDAN scheme's introduction, airfares have become more affordable, and the number of operational airports has increased significantly. As per the latest data, the number of operational airports has gone up to 141 from 74 in 2014.
Connectivity to Underserved/Unserved Destinations
The UDAN scheme has connected 68 underserved/unserved destinations, including 58 airports, 8 heliports, and 2 water aerodromes. These regions were earlier neglected due to their remote locations and poor infrastructure. With the UDAN scheme's implementation, these regions have received a much-needed boost in terms of air connectivity. People in these areas can now travel by air at affordable prices.
New Routes and Enhanced Connectivity
The UDAN scheme has initiated 425 new routes, connecting more than 29 states and Union Territories across the country. This has led to enhanced air connectivity and made air travel more accessible to people living in remote areas. The scheme's success is evident from the fact that more than one crore passengers have availed its benefits since its launch.
Conclusion
The UDAN scheme has brought about a significant transformation in India's aviation sector. It has enhanced air connectivity to remote and underdeveloped regions, making air travel accessible to the masses. With the scheme's implementation, airfares have become more affordable, and the number of operational airports has increased significantly. The scheme has also provided a boost to the country's tourism industry. In conclusion, the UDAN scheme's achievements are commendable, and it has undoubtedly contributed to the country's progress and development.