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The Regional Connectivity Scheme UDAN aims at
Connecting the major ports with their hinterland through road based transport networks
Improving the Inland Waterways connectivity between regional centres.
Connecting the country’s under-served and un-served airports at affordable costs
Connecting the ASEAN countries through cheap affordable flights.
The UDAN scheme aims to stimulate regional connectivity with flights covering distances up to 800 km through a market-based mechanism. The government is expected to compensate for the loss with a Viability Gap Funding (VGF). The Centre would like the States to provide minimum land, free of cost, for development of the RCS airports. More importantly, the States will have to bear 20% towards VGF. The share will be 10% for North Eastern States and Union Territories. The government aims at making flying affordable by capping fares at Rs. 2500 per seat per hour.
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