ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
News: Ministry of Civil Aviation has launched the 4th round of Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN)
Facts:
About UDAN Scheme:
- The Regional Connectivity Scheme (RCS)-Ude Desh ka Aam Naagrik (UDAN) scheme was launched in 2017 by the Ministry of Civil Aviation. The scheme is a component of the National Civil Aviation Policy (NCAP), 2016.
- The scheme would be in operation for a period of 10 years.
- Aim: To develop a regional aviation market. It seeks to connect under-served and unserved airports in India through the revival of existing airstrips and airports.
- Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500 per hour of flight.
- The losses for the price cap is compensated by a mechanism called Viability Gap Funding– A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.
Objectives:
- Create affordable yet economically viable and profitable flights on regional routes.
- Development of remote areas and enhancing trade and commerce and tourism expansion.
- Employment creation in the aviation sector
About UDAN 4.0
- The focus of UDAN 4.0 is on priority areas like North East Region, Hilly States, Jammu and Kashmir, Ladakh and Islands.
Key features of UDAN 4.0:
- Revision of (Viability Gap Funding) VGF cap – The provision of VGF for Category 2 / 3 aircraft (more than 20 seaters) has been enhanced for the operation of RCS flights in the priority areas.
- Promoting short-haul routes – The provision of VGF would be restricted for routes with stage length up to 600 km. Beyond it, no monetary support would be provided.
- Well defined Prioritization framework – Airports that have already been developed by AAI would be given higher priority for the award of VGF under the Scheme.
- Flexibility to change the frequency of flight operation – The Selected Airline Operator (SAO) would be allowed to change the frequency of flight operation, during the tenure of flight operation of the given route.
- Inclusion of helicopter and seaplane operation: The operation of helicopter and seaplane would be allowed under this round.
Additional Information:
National Civil Aviation Policy (NCAP), 2016:
- It aims at making flying affordable to the masses and convenient
- It also seeks to establish an integrated ecosystem that will lead to significant growth of the civil aviation sector to promote tourism, employment, and balanced regional growth.
- It further aims to enhance regional connectivity through fiscal support and infrastructure development and enhance ease of doing business through deregulation, simplified procedures and e-governance.
