What is UDAN Scheme?
Historical Background
Key Points
9 points- 1.
Aims to connect underserved and unserved airports in India.
- 2.
Provides financial incentives to airlines to operate on regional routes.
- 3.
Offers Viability Gap Funding (VGF) to airlines to make fares affordable.
- 4.
Caps airfares on UDAN routes to make air travel accessible to the common citizen.
- 5.
Promotes the development of new airports and the upgradation of existing ones.
- 6.
Encourages state governments to support the scheme by providing land and other infrastructure.
- 7.
Focuses on improving air connectivity to remote and hilly regions.
- 8.
Aims to boost tourism and economic activity in smaller cities.
- 9.
Operates on a market-based mechanism where airlines bid for routes.
Recent Developments
5 developmentsSeveral rounds of UDAN bidding have been completed, connecting numerous regional airports.
Increased focus on improving infrastructure at regional airports.
Efforts to promote the use of smaller aircraft for regional connectivity.
Integration of UDAN routes with existing airline networks.
Challenges related to the financial sustainability of UDAN routes.
This Concept in News
1 topicsFrequently Asked Questions
61. What is the UDAN scheme and what are its primary objectives?
The UDAN (Ude Desh ka Aam Nagrik) scheme is a regional airport development and regional connectivity scheme launched by the Government of India. Its primary objectives are: * To make air travel affordable and widespread, especially to tier-2 and tier-3 cities. * To connect underserved and unserved airports in India. * To promote the development of new airports and the upgradation of existing ones.
- •Make air travel affordable.
- •Connect underserved airports.
- •Promote airport development.
Exam Tip
Remember the full form of UDAN - Ude Desh ka Aam Nagrik. Focus on its aim to improve regional connectivity.
2. What are the key provisions of the UDAN scheme?
The key provisions of the UDAN scheme include: * Connecting underserved and unserved airports in India. * Providing financial incentives to airlines to operate on regional routes. * Offering Viability Gap Funding (VGF) to airlines to make fares affordable. * Capping airfares on UDAN routes to make air travel accessible. * Promoting the development of new airports and the upgradation of existing ones.
- •Connect underserved airports.
- •Financial incentives for airlines.
- •Viability Gap Funding (VGF).
- •Capped airfares.
- •Airport development and upgradation.
Exam Tip
Focus on the VGF aspect and how it helps in making air travel affordable under the scheme.
3. How does the UDAN scheme work in practice?
In practice, the UDAN scheme works by identifying underserved and unserved airports and then inviting airlines to bid for routes connecting these airports. The government provides financial support in the form of VGF to airlines that win the bids, which helps them to offer affordable fares. The scheme also involves the development and upgradation of airport infrastructure to support increased air traffic.
Exam Tip
Understand the bidding process and the role of VGF in the practical implementation of the scheme.
4. What are the challenges in the implementation of the UDAN scheme?
Challenges in implementing the UDAN scheme include: * Ensuring the long-term financial viability of airlines operating on UDAN routes. * Developing and upgrading airport infrastructure in remote locations. * Coordinating with various stakeholders, including state governments and airport operators. * Addressing issues related to land acquisition and environmental clearances for airport development.
- •Financial viability of airlines.
- •Airport infrastructure development.
- •Stakeholder coordination.
- •Land acquisition and environmental clearances.
Exam Tip
Consider the logistical and financial challenges involved in connecting remote areas by air.
5. What is the significance of the UDAN scheme in the Indian economy?
The UDAN scheme is significant for the Indian economy because it: * Promotes regional economic development by improving connectivity to smaller cities and towns. * Supports the growth of the aviation sector and related industries. * Creates employment opportunities in the aviation and tourism sectors. * Enhances tourism potential in underserved regions.
- •Promotes regional economic development.
- •Supports aviation sector growth.
- •Creates employment opportunities.
- •Enhances tourism potential.
Exam Tip
Link the UDAN scheme to broader economic goals like regional development, job creation, and tourism promotion.
6. How has the UDAN scheme evolved since its launch in 2016?
Since its launch in 2016, the UDAN scheme has evolved through several rounds of bidding, connecting numerous regional airports. There has been an increased focus on improving infrastructure at regional airports and efforts to promote the use of smaller aircraft for regional connectivity. The scheme is part of the National Civil Aviation Policy (NCAP) 2016.
Exam Tip
Note that the scheme is part of NCAP 2016 and remember its focus on regional airport infrastructure.