Ude Desh Ka Aam Naagrik (Udan)/Regional Connectivity Scheme (RCS)

Quick facts

• Purpose: To enable air operations on underserved / unserved routes, promote balanced regional growth and make flying affordable for masses Ude Desh Ka Aam Naagrik (Udan)/Regional Connectivity Scheme (RCS)
• Type: Central Sector Scheme
• Support to airlines: In the form of Concessions and Viability Gap Funding (VGF)
• Implementing Agency: The Airports Authority of India (AAI).

Objective 

• The scheme focuses on improving unserved air routes in underserved regions of the country and fulfilling the aspirations of the common citizens.

Salient features

Background: Launched under the National Civil Aviation Policy (NCAP) of 2016 to improve regional connectivity via fiscal support and infrastructure development.  Subsidized Seats: Example: Under UDAN 5.3, airfare is capped at ₹3828 for distances of 501–525 km.  Under UDAN 5.0, the 600 km cap has been removed (now there is no distance restrictions).  Regional Connectivity Fund (RCF): Funds the Viability Gap Funding (VGF) through a levy on certain domestic flights. Aims for 30 crore domestic ticketing by 2022 and 50 crore by 2027. Demand and Market-Based Model: States/airports must provide concessions like free security, fire services, utilities at reduced rates, and land for RCS airports.  Focused Area: UDAN 4.0 prioritizes connectivity with North-East, hilly states, and islands with helicopters and seaplanes. Key Initiatives under UDAN  Krishi UDAN: Supports farmers in transporting agricultural products to boost value realization, focusing on the North-East and tribal districts.  International Air Connectivity Scheme (IACS): Helps states establish international airport connectivity in response to their requests.