Launch of the Next Phase of UDAN, Pg11

Key Highlights:

• The next phase of the UDAN (Ude Desh Ka Aam Naagrik) scheme has been launched with an outlay of approximately ₹29,000 Crore.
• The initiative aims to enhance remote and regional air connectivity across India.
• Key components include the development of 100 new aerodromes and 200 heliports.
• It provides Viability Gap Funding of ₹10,043 Crore to support airline operations on regional routes.
• The scheme promotes the Aatmanirbhar Bharat vision through the acquisition of indigenous HAL Dhruv helicopters and Dornier aircraft.

Detailed Insights:

• The UDAN scheme, launched in 2016, is a Regional Connectivity Scheme (RCS) designed to make air travel affordable and accessible to the common citizen.
• The development of 100 new aerodromes from existing unserved airstrips is backed by an investment of ₹12,159 Crore.
• Construction of 200 heliports, particularly in hilly and aspirational districts, is allocated ₹3,661 Crore to improve accessibility in challenging terrains.
• Viability Gap Funding (VGF) is a crucial mechanism where the government provides financial assistance to airlines to cover operational costs on commercially unviable regional routes, ensuring affordable fares.
• An allocation of ₹2,577 Crore is designated for Operations and Maintenance (O&M) support to ensure the sustainability and efficiency of regional airports.
• The procurement of indigenous aircraft like HAL Dhruv and Dornier 228 strengthens domestic manufacturing capabilities in the aviation sector.
• This phase is expected to significantly boost trade, tourism, and regional economies, fostering growth for new airlines and aviation start-ups.

Key Concepts Involved:

• UDAN (Ude Desh Ka Aam Naagrik): A flagship government scheme to enhance regional air connectivity and make air travel affordable for the masses.
• Viability Gap Funding (VGF): Financial support provided by the government to make economically unviable but socially desirable infrastructure projects or services feasible.
• Aatmanirbhar Bharat: A national vision promoting self-reliance across various sectors, including indigenous manufacturing and reducing import dependence.