UDAN Scheme

UDAN Scheme: Ministry of Civil Aviation took a major step today towards making flying a reality for the small town common man. The Civil Aviation Minister Shri P Ashok Gajapathi Raju launched the Ministry’s much awaited Regional Connectivity Scheme “ UDAN” in New Delhi on 21st October. Speaking on the occasion Shri Raju expressed hope that the first flight under the scheme would be able to take off by January next year. He said the scheme had been prepared after a lot of stakeholder consultation and called for support from all players to make it a success.  Also speaking on the occasion the Minister of State for Civil Aviation Shri Jayant Sinha said that the objective of the scheme was “Ude Desh Ka Aam Naagrik” He said this scheme ensure affordability, connectivity, growth and development. 

About UDAN Scheme:

• Civil Aviation Minister Shri P Ashok Gajapathi Raju launched the Ministry’s much awaited Regional Connectivity Scheme “ UDAN” in New Delhi on 21st October 2016.
• UDAN is an innovative scheme to develop the regional aviation market. It is a market-based mechanism in which airlines bid for seat subsidies. 
• This first-of-its-kind scheme globally will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns.  It would provide a win-win situation for all stakeholders – citizens would get the benefit of affordability, connectivity and more jobs. 
• The scheme UDAN envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. The scheme would be in operation for a period of 10 years. 
• Central Government would provide concessions in the form of reduced excise duty, service tax, permission to trade ASKMs for Non-RCS (UDAN) Seats and flexibility of code sharing at the RCS (UDAN) airports. 
• State governments will have to lower the VAT on ATF to 1% or less, besides providing security and fire services free of cost and electricity, water and other utilities at substantially concessional rates. 
• Airport operators shall not impose Landing and Parking charge and Terminal Navigation Landing Charges in addition to discounts on Route Navigation Facility Charges.