Explanation:

UDAN
Ude Desh Ki Aam Nagrik (UDAN) is a regional connectivity scheme introduced by the Ministry of Civil Aviation. Under UDAN 3, government proposes to connect destinations through seaplanes and have invited bids for the same.Among the destinations, the recently unveiled Statue of Unity at Sardar Sarovar Dam, Sabarmati Riverfront in Ahmedabad, Tehri Dam in Uttarakhand and Nagarjuna Sagar in Telangana are included.
• UDAN offers concessions to the airlines to encourage them to fly on regional routes.
• Concession include operating subsidies like levies or charges imposed by the airport operators, excise duty at 2% and VAT at 1% on aviation turbine fuel, parking charges at airports and exempting these operations from the GST net.
• Airports Authority of India (AAI) is the implementing agency.
• A Regional Connectivity Fund (RCF) will be created to subsidise operations under the RCS.
• The central government will fund 80% of the losses incurred and the rest will be covered by the states.
• This is provided through the Viability gap funding (VGF) to the selected airline operators from RCF, and state governments will be required to reimburse the applicable share.
• VGF will be provided for three years from the date of commencement of operations of such RCS flights.
• In general, central and state contributions for VGF are 80:20 and for the north-eastern states & union territories it is 90:10.
• Benefits under the Scheme will be available for a period of 10 years from the date of its notification.
• RCS will be made operational only in states and at airports which are willing to provide concessions required under the Scheme.