Context: Recently, Union Home Minister praised the Ude Desh Ka Aam Nagrik (UDAN) scheme on its eighth anniversary, highlighting its success in connecting underserved regions and promoting affordable air travel.

About Ude Desh Ka Aam Nagrik (UDAN) scheme

• Nodal Ministry: Ministry of Civil Aviation

• Genesis: Launched in 2016, a vital component of National Civil Aviation Policy (NCAP) 2016. 

• The first RCS-UDAN flight was inaugurated in 2017, connecting Shimla to Delhi.

• Implementing Agency: Airports Authority of India (AAI)

• Type: Central Sector Scheme

• Purpose:  To improve infrastructure and connectivity in India, especially in remote and underserved regions, making air travel affordable for the masses.

• Support Mechanisms

• Airport Operators: They waive landing and parking charges for RCS flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights.

• Union Government: For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports capped at 2%. 

• State Governments: States have committed to reducing VAT on ATF to 1% or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.

• Benefits 

• Subsidised seats for passengers: Travel fee is capped (initially it was capped to Rs.2500- per passenger)

• Support to Airlines:  Government compensates in the form of Viability Gap Funding (VGF) to airlines for losses due to low fares. 

• Regional Connectivity Fund (RCF): It facilitates the self-financing mechanism of the scheme by funding the VGF through a levy on certain domestic flights.

• Market-driven model: Airlines assess demand on specific routes and submit proposals during bidding rounds.

• Recent changes: Currently 5th phase of the scheme is ongoing. The distance gap of 600 km and Airfare Caps is reduced VGF is enhanced 

• Promoting Tourism: Initiatives like UDAN 3.0 have introduced tourism routes connecting several destinations in the Northeast region, while UDAN 5.1 is focused on expanding helicopter services in hilly areas to stimulate tourism, hospitality, and local economic growth.

• Number of Airports Increased: The number of operational airports in the country has doubled from 74 in 2014 to 157 in 2024 and the aim is to increase this number to 350-400 by 2047. 

Key achievements of the scheme

• Demand for new aircraft of all sizes: Scheme has generated an escalating demand for new aircraft.

• Promoting tourism: UDAN 3.0 introduced tourism routes. Scheme has successfully connected destinations such as Khajuraho (Madhya Pradesh), Deoghar ( Jharkhand,), Amritsar (Punjab), and Agatti Island (Lakshadweep). 

• Boosting air connectivity: From Mundra (Gujarat) to Tezu in Arunachal Pradesh and Kullu in Himachal Pradesh to Salem in Tamil Nadu, RCS-UDAN has connected 34 States/UTs across the country. 

• A total of 86 aerodromes have been operationalized under UDAN. 

Conclusion

• UDAN is not just a scheme; it is a movement aimed at empowering every Indian with the gift of flight. 

• Enhancing regional connectivity and ensuring affordability has fulfilled countless citizens’ aspirations while stimulating economic growth and job creation. 

• The UDAN scheme remains a game changer for Indian aviation, contributing significantly to India’s vision of a connected and prosperous nation.