Udan 5.0: Civil Aviation ministry
Recently the Ministry of Civil Aviation has launched the Regional Connectivity Scheme (RCS)-UDAN 5.0 (Ude Desh Ka Aam Nagrik).
- RCS-UDAN is a market-driven scheme. It aims to enhance regional air connectivity from under-utilized and under-utilized airports and make air travel affordable.
- It was prepared after a review of the National Civil Aviation Policy (NCAP) – 2016.
Key Features of Udan 5.0:
- In this, attention has been given to Category – 2 (20-80 seats) and Category – 3 (more than 80 seats).
- The distance limit of 600 KM has been done away with.
- No pre-determined route option will be given.
- Viability Gap Funding (VGF) has been increased from the earlier 500 KM to 600 KM.
- Ever since the scheme was launched, several amendments have been made and several provisions have been added to the UDAN scheme based on the preferences of the government as well as market experience or demand.
- Under UDAN-2, more focus was given to hilly areas, North Eastern Region (NER) and Island States/UTs.
- Under UDAN-3, the concept of sea-plane operations and tourist routes were introduced.
- Under UDAN-IV, VGF support for small aircraft was increased, state air routes were included and regional hubs were focused on short routes for development.
Key Features of UDAN Scheme –
- Limited Government Support: The objectives of the scheme were to be achieved through monetary (VGF) and non-monetary benefits provided to the airline operators.
- Cooperative Federalism: State level coordination committees have been formed to benefit the airline operators.
- A cap on air fares, technology enabled procedures and transparent and competitive bidding are some of its other features.
Source – PIB
