UDAN scheme surpasses 130 lakh beneficiaries with 517 routes operational across 76 Airports

 The Ude Desh ka Aam Nagrik (UDAN) scheme, part of the Regional Connectivity Scheme (RCS), has witnessed over 130 lakh individuals benefiting from its initiatives. Currently, 517 RCS routes are in operation, connecting 76 airports, including 9 heliports and 2 water aerodromes. The government, aiming to bolster regional air connectivity at affordable rates, has set ambitious targets under the UDAN Scheme.

By 2024, the goal is to operationalize 1000 UDAN routes and revitalize or develop 100 unserved and underserved airports, heliports, and water aerodromes. Out of the allocated Rs. 4500 crores for airport development, Rs. 3751 crores have been effectively utilized. The financial backbone of the UDAN Scheme lies in Viability Gap Funding (VGF), provided as incentives to selected airline operators. State governments contribute 20% towards VGF, except for North-Eastern states and Union Territories, where the share is 10%.

Excise Duty, at rates of 1% and 2%, is imposed on Aviation Turbine Fuel (ATF) drawn by selected airline operators at RCS Airports for a period of three years. The RCS-UDAN is market-driven, allowing airlines to submit proposals based on the assessment of demand during bidding. The scheme covers a diverse range of aircraft, including sea planes and helicopters, operated by carriers possessing a valid Scheduled Operator Permit (SOP) or a Scheduled Commuter Operator (SCO) permit issued by the DGCA.

As of November 28, 2023, Rs. 3020 crores have been disbursed as VGF to selected airline operators. The funds aim to support RCS routes for three years. Looking ahead, Phase II of the Scheme, spanning from 2023 to 2026, has allocated Rs. 1000 crores for the development and operationalization of 50 new airports, heliports, and water aerodromes across the country, including in Tamil Nadu. In the state of Tamil Nadu, out of the sanctioned Rs. 97.88 crores for airport development, an expenditure of Rs. 94.51 crores has been incurred thus far. The UDAN Scheme remains in operation for a decade, subject to periodic reviews.