UDAN Scheme Extended for 10 more years

The UDAN scheme, launched in 2016, aims to enhance regional air connectivity in India. It operates on a market-driven model, with the government providing Viability Gap Funding and concessions.

UDAN Scheme Overview & Extension

UDAN scheme launched on October 21, 2016, to enhance regional air connectivity
Recently extended for 10 more years until 2036 by Aviation Minister K Rammohan Naidu
Operates on market-driven model where airlines assess demand and bid for routes
Government provides Viability Gap Funding (VGF) and various concessions
Aims to make air travel accessible to common citizens through affordable fares

Impressive Growth & Achievements

Operationalized 601 routes connecting 34 states and Union Territories
Increased operational airports from 74 in 2014 to 157 in 2024
Successfully operationalized 86 aerodromes under the scheme
Facilitated over 2.8 lakh flights serving 1.5 crore passengers
Set ambitious target of 350-400 operational airports by 2047

Support Measures & Financial Framework

Waiver of landing and parking charges for RCS flights
Limited excise duty on Aviation Turbine Fuel (ATF) at RCS airports
States committed to reducing VAT on ATF to 1% or less for 10 years
Encouragement for airlines to enter code-sharing agreements
Provision of essential services at reduced rates by state governments

Impact on Aviation Industry & Tourism

Catalyzed emergence of regional carriers like Flybig, Star Air, IndiaOne Air, and Fly91
Enhanced connectivity to tourist destinations through UDAN 3.0 and 5.1
Connected major religious sites like Khajuraho, Deoghar, and Amritsar
Improved accessibility to remote areas, particularly in Northeast region
Transformed smaller airports like Darbhanga, Prayagraj, and Hubli into sustainable operations

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