Explanation:

About UDAN:
?    The UDAN scheme is applicable on flights which cover between 200 km and 800 km with no lower limit set for hilly, remote, islands and regions which are security sensitive.
?    Under the UDAN scheme, the flights are bound to connect at least one RCS airport (underserved and unserved airports).
?    The RCS caps fares and also offers a ceiling for the VGF(Viability Gap Funding) available for each route. Which means the airlines cannot charge beyond the caps specified from passengers.
?    For the shortest route under the scheme fare has been capped at Rs 1,420. For longest route, fare has been capped ar Rs 3,500.
?    The Centre has also decided to provide concessions such as 2% excise on Value Added Tax (VAT) and service tax at 1/10th.
?    State government are bound to provide free security and fire service, utilities at concessional rates and reduce VAT on ATF to 1%.
?    There will be no landing charges, parking charges and Terminal Navigation Landing Charges will be imposed for RCS flights.
?    A Regional Connectivity Fund (RCF) will be created to fund the scheme via a levy on certain flights. States are expected to contribute 20 per cent to the fund.