UDAN Scheme Flashcards
RCS-UDAN
Regional Connectivity Scheme- Ude Desh Ka Aam Nagrik
launched on
October 21, 2016
aim
to democratize aviation by making flying accessible and affordable for all
implemented by
Ministry of Civil Aviation (MoCA)
The 1st RCS-UDAN flight was inaugurated on
April 27, 2017 by Prime Minister (PM) Narendra Modi, connecting Shimla (Himachal Pradesh, HP) to New Delhi (Delhi)
The RC-UDAN is an important component of India’s_______, with a 10- year vision to connect Tier-2 and Tier-3 cities through a market-driven yet financially supported model
National Civil Aviation Policy (NCAP) 2016
The scheme aimed to enhance infrastructure and connectivity in India, especially in remote and underserved regions.
The scheme operates on the ________ approach, where airlines assess demand on specific routes and submit proposals during the bidding rounds.
market-driven
Under this scheme, airlines are being incentivized through concessions and __________ to operate on regional routes, ensuring fares and enhanced accessibility.
Viability Gap Funding (VGF)
Note: VGF is a central sector initiative by the Government of India, administered by the Department of Economic Affairs (DEA) under the Ministry of Finance (MoF). Launched in 2006 and revamped in 2020, to support projects that are economically desirable but not commercially viable on their own.
VGF: It provides financial support to airlines to ensure affordable fares.
- _______ helps in ensuring affordability.
- Collaborative Governance between centre government, state governments, Airport Authority of India (AAI), and private airport operators.
Airfare Cap (limit)
Stakeholder Incentives:
GoI has implemented various supportive measures to attract airlines to operate flights in less attractive markets:
- Airport Operators: They provided exemption to RCS flights from landing and parking charges, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Also, a discounted Route Navigation and Facilitation Charge (RNFC) is applied.
- Central Government: For the initial 3 years of the scheme, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at ________. GoI has also encouraged the airlines to enter code-sharing agreements to expand their reach.
- State Government: Various state governments have committed to reducing VAT on ATF to ______ or less for a period of 10 years and providing essential services such as security, fire services, and utility services at discounted rates.
2% ;
1%
Since the inception of scheme in 2016, the GoI has launched various versions of the scheme:
i. UDAN 1.0 (2017): Under this version of scheme, 5 airlines companies were given the charge of 128 flight routes to 70 airports (including 36 new airports).
ii. UDAN 2.0 (2018): The MoCA has announced 73 underserved and unserved airports and for the 1st time, helipads were also connected into the UDAN network.
iii. UDAN 3.0 (2019): The MoCA in coordination with the Ministry of Tourism (MoT) had announced plan to include tourism routes in the scheme. Other than Seaplanes for connecting water aerodromes, various routes in the North-East Region (NER) came under the ambit of the scheme.
iv. UDAN 4.0 (______): This version of the scheme is focused on hilly regions, North-Eastern states, and island territories. It focuses on helicopter and seaplane service.
2020
UDAN 5: After the launch of 4 versions of UDAN scheme, the MoCA launched the 5th version of RCS-UDAN.
- UDAN 5.0: This latest version of scheme launched in _______, focused on Category2 (comprises 20 to 80 seats) and Category-3 (more than 80 seats) aircraft. The MoCA has removed the cap of 600 kilometer (km) and there is no restriction on the distance between the origin and destination of the flight. Airlines are required to commence operations within 4 months, improving turnaround time and planning.
- UDAN 5.1: Launched in May 2023, designed specifically to provide helicopter connectivity, especially in priority areas, increased the cap on VGF while airfare caps reduced.
- UDAN 5.2: It was launched in July 2023 to provide impetus to the tourism sector through small aircraft (less than 20 seats). Under the scheme, small aircraft operators are allowed to operate 10%–40% of the annually quoted RCS seats per quarter.
- UDAN 5.3 (January 2024) and UDAN 5.4 (August 2024): The MoCA has invited special rounds to re-bids discontinued or terminated routes. It is open for all airline categories, aimed at reviving connectivity on strategic routes.
- UDAN 5.5: This latest version of scheme has redefined route allocation and bidding guidelines. It included seaplane operations, with invited for over 50 water bodies, enhancing multimodal regional access.
April 2023
Key Accomplishments of UDAN (2016-2025):
i. Till date, _______ routes have been operationalized under the scheme, connecting 90 airports (including 15 heliports & 2 water aerodromes) across the country.
ii. So far, the scheme has benefitted over 1.49 crore passengers from affordable regional air travel, and 3 lakh UDAN flights operated nationwide.
iii. Under the scheme, airport network has more than doubled from 74 (2014) to 159 (2024).
iv. In the year 2024 alone, total 102 new routes were launched (including 20 in NER); 66 added in 2024-25 (till date).
v. As of March 13 2025, GoI has disbursed Rs 4,023.37 crore as VGF under the scheme.
vi. The scheme has improved regional trade, healthcare access, and tourism; enhanced air connectivity to key destinations like: Khajuraho (Madhya Pradesh, MP), Amritsar (Punjab), Ajmer (Rajasthan), Deoghar (Jharkhand) and Northeast India.
- The scheme has enabled the rise of regional airlines such as: Flybig, Star Air, IndiaOne, and Fly91
625
UDAN Yatri Café: This initiative was launched to facilitate affordable and quality food options at airports. So far, two UDAN Yatri Cafés have been inaugurated at Netaji Subhas Chandra Bose International (NSCBI) Airport in Kolkata, West Bengal (WB) and ________.
Chennai Airport in Chennai, Tamil Nadu (TN)
Guidelines for Seaplane Operations:
In August 2024, GoI introduced the Guidelines for Seaplane Operations in India to accelerate regional and last-mile connectivity. These guidelines focus on safety, security and operational viability.
- UDAN Round 5.5 includes invitations for seaplane operations from more than _____ water bodies.
50
- Revamped UDAN initiative: This latest version of scheme aims to include ______ new destinations and enable affordable air travel for 4 crore more passengers over the next 10 years.
- Krishi UDAN Scheme: This multi-ministry convergence scheme is designed to support farmers and enhance value realization for agri-produce. It provides timely and cost-effective air logistics, particularly from NER, hilly, and tribal regions. Currently, the scheme covers 58 airports, with a focus on 25 priority airports and 33 others across the country.
- Airport Infrastructure Development: GoI has committed to developing 50 new airports over the next 5 years. These new airports include new greenfield airports in Bihar, expansion of Patna Airport, and development of a brownfield airport at Bihta in Patna district of Bihar
120
