UDAN Scheme
Context:
- Sixteen airports constructed under the government’s Regional Connectivity Scheme (RCS) UDAN are lying unused, of the 74 airports operationalised under the scheme.
- UDAN is a regional airport development program of the Government of India and part of the Regional Connectivity Scheme (RCS) of upgrading under-serviced air routes. Its goal is to make air travel affordable and improve economic development in India.
- Nodal Ministry: The UDAN Scheme is a key component of the National Civil Aviation Policy (NCAP) which was released by the Ministry of Civil Aviation on 15 June 2016.
- Affordability: Make air travel affordable for the general public. Hence airfare on a certain number of seats in an aircraft are capped.
- Viability Gap Funding (VGF): VGF support is a monetary assistance that is provided by MoCA to the airline operator to enable them to successfully run the routes. VGF support is market determined, though a competitive bidding mechanism where the airline operators bid for the route in the form of VGF per seat.
- Funding Pattern: The scheme is jointly funded by the central government and state governments.