The Ministry of Civil Aviation has launched the 5th round of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN) to further enhance the connectivity to remote and regional areas of the country and achieve last mile connectivity.
Key features of UDAN 5.0
- This round of UDAN focuses on Category-2 (20-80 seats) and Category-3 (>80 seats).
- The earlier stage length cap of 600 km is waived off and there is no restriction on the distance between the origin and destination of the flight.
- Viability gap funding (VGF) to be provided will be capped at 600 km stage length for both Priority and Non-Priority areas which was earlier capped at 500 km.
- No predetermined routes would be offered.
About UDAN
- The scheme was initiated on 21st October 2016 and the first flight was launched by the Prime Minister on 27th April 2017.
- RCS-UDAN was formulated based on the review of The National Civil Aviation Policy (NCAP)-2016 and it was planned to remain in force for a period of 10 years.
- It has a self-financing mechanism with the development of Regional Connectivity Fund (RCF).
- Under this Scheme, RCF was created, which funds the VGF requirements of the scheme through a levy on certain domestic flights.
- This way, funds generated from the sector themselves stimulate the growth and development of the sector.
- UDAN created a framework based on the need and led to the formulation of:
- Lifeline UDAN (for transportation of medical cargo during pandemic).
- Krishi UDAN (value realization of agriculture products especially in Northeastern Region {NER} and tribal districts).
- International UDAN routes for NER to explore International Connectivity from / to Guwahati and Imphal.
