Context: Recently, the Ministry of Civil Aviation has launched UDAN 5.1, a new version of the Regional Connectivity Scheme (RCS) specifically designed for helicopter routes.

About UDAN 5.1

• The scheme aims to democratize air travel and promote tourism, hospitality, and local economies.

• To further enhance the connectivity to remote areas of the country and achieve last mile connectivity through helicopters.

• It allows operators to operate routes where one of the origin or destination locations is in a priority area, such as hilly regions, islands, or North East states.

Salient features

• a) The scheme will now allow routes where one of the origin or destination locations is in a priority area. Earlier both points had to be in priority areas.

• b) Airfare caps have been reduced by as much as 25% to make flying in helicopters more affordable for passengers.

• c) Viability Gap Funding (VGF) caps for the operators have been increased substantially for both single and twin-engine helicopters to enhance financial viability for operating the awarded routes.

Significance

• For the first time under RCS-UDAN, this round is designed specifically for helicopter routes. Greater helicopter penetration will help boost tourism, hospitality, and thus, local economies.

• Till date 46 helicopter routes have been operationalized under previous rounds of the scheme benefitting a number of hilly and North East states. This round is targeting coverage of a much larger number of routes.

Road Ahead

• Successful Implementation: Ensure effective implementation of UDAN 5.1, considering the expanded scope of operations, reduced airfare caps, and increased VGF caps.

• Collaboration with Operators: Foster collaboration and engagement with helicopter operators to optimize last-mile connectivity and promote the growth of the helicopter segment in the civil aviation industry.

• Monitoring and Evaluation: Establish a robust monitoring and evaluation mechanism to assess the impact of UDAN 5.1 on remote regions, air travel affordability, and economic development.

• Promoting Tourism: Leverage the increased helicopter penetration to boost tourism in remote areas, thereby supporting the hospitality industry and local economies.

• Future Expansion: Continuously assess the potential for further expansion of the UDAN scheme, considering new routes and modes of transportation to improve connectivity to underserved regions of India.

About UDAN Scheme

• UDAN- Ude Desh Ka Aam Nagrik is an innovative scheme to develop the regional aviation market.

• The scheme was initiated in October 2016 with the objective of fulfilling the aspirations of the common citizen, with an enhanced aviation infrastructure and air connectivity in tier II and tier III cities.

• The scheme UDAN envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.

• Nodal Ministry:- Ministry of Civil Aviation.