Ude Desh Ka Aam Nagrik (UDAN) Scheme: A Progress Evaluation

Civil Aviation plays a very big role in economic growth and development of the country. By spending INR 100 on air transport, benefits worth INR 325 are reaped and by providing 100 direct jobs in this sector of economy, there is generation of about 600 direct jobs in other sectors of economy. By promoting balanced regional development of civil aviation, the all-round growth and development of the country can be ensured. With a boost to grow Civil Aviation in India, the UDAN scheme was conceptualized in 2015 as a Regional Connectivity Scheme wherein the airline operators were encouraged to operate flights on regional and remote routes by providing affordable fares to the common people.  

Government Support

Under the scheme, the airline operators were to be given the monetary (Viability Gap Funding-VGF) and non-monetary benefits for a period of 3 years. The monetary support was to be provided for 50% capacity of the aircraft deployed by airlines on these routes. The capping of airfares on these routes was another key point of the scheme which made it affordable for people to fly on these routes.

Modifications of Scheme

Under UDAN 2, greater focus was on hilly areas, island States and North-eastern part of the country. Further, more focus was on the helicopter operations where the fixed-wing planes could not reach.

Under UDAN 3, seaplanes were brought under its ambit. Another key point of this modification was to collaborate with Ministry of Tourism to boost tourism.

UDAN 4 saw enhanced funding under VGF for smaller airplanes, relaxations on types of regional operators. UDAN 4.1 focused on awarding and operationalizing those routes of the previous UDAN rounds which has been cancelled. Also, it laid emphasis on operationalizing those routes which have been specifically requested by States, Ministry of Tourism and Ministry of DONER.

Lifeline Udan

This initiative was incorporated under the UDAN scheme during the Covid times in March 2020. It paid a crucial role by ensuring continuous movement of essential medical cargo across the country, particularly to the remote and hilly regions of the country, including the North-East region as well.

Krishi Udan

This initiative became operational in December 2020 and was focused on providing subsidy on 41 eligible fruits and vegetables for being airlifted from North Eastern and other Himalayan states. The subsidy is 50% of domestic air freight and 50% of TSP (Terminal, storage and processing) at airports.

Progress Till Date

• Till October 2021, work initiated to provide scheduled connectivity to 104 unserved or under-served airports, 14 water aerodromes and 36 helipads. Out of these, 54 airports, 2 water aerodromes and 6 helipads have already been operationalized.
• Out of about 948 routes awarded under UDAN, 389 have been operationalized.