UDAN (Ude Desh ka Aam Nagrik) is a regional air connectivity scheme launched by the Government of India in 2016. The scheme aims to connect remote and regional areas of the country by providing affordable air travel to the common man. Under UDAN, the government provides various incentives to airlines to operate flights to underserved and unserved airports.
The scheme provides various benefits to passengers, airlines, and the aviation sector in general. Some of the benefits include:
- Affordable airfare: UDAN provides affordable air travel to passengers by capping the airfare at a maximum of Rs. 2,500 per hour of flight for a fixed number of seats on each flight.
- Financial incentives to airlines: The government provides various financial incentives to airlines to operate flights to underserved and unserved airports. These incentives include a viability gap funding (VGF) of up to Rs. 25 crore per year for a period of three years, exemption from various taxes, and other concessions.
- Increased air connectivity: UDAN aims to increase air connectivity to remote and regional areas of the country, which will help in promoting tourism, business, and trade.
- Boost to the economy: The scheme is expected to boost the economy by creating employment opportunities, improving connectivity, and promoting economic development in remote and regional areas.
Under UDAN, the government has identified various underserved and unserved airports across the country and has invited bids from airlines to operate flights to these airports. As of 2021, over 325 routes have been awarded to airlines, and more than 60 airports have been connected under the scheme.
Overall, UDAN is a significant initiative by the government to promote regional air connectivity and provide affordable air travel to the common man.
