Ministry of Civil Aviation launches UDAN 5.1, specifically designed for helicopter routes

Source: The post is based on the article “Ministry of Civil Aviation launches UDAN 5.1, specifically designed for helicopter routes” published in the PIB on 24th May 2023

What is the News?

Ministry of Civil Aviation has launched (Ude Desh Ka Aam Nagrik) UDAN 5.1.

What is the UDAN Scheme?

About UDAN 5.1

Aim: To further enhance the connectivity to remote areas of the country and achieve last mile connectivity through helicopters.

Salient features:

a) The scheme will now allow routes where one of the origin or destination locations is in a priority area. Earlier both points had to be in priority areas.

b) Airfare caps have been reduced by as much as 25% to make flying in helicopters more affordable for passengers.

c) Viability Gap Funding (VGF) caps for the operators have been increased substantially for both single and twin-engine helicopters to enhance financial viability for operating the awarded routes.

Significance:

-For the first time under RCS-UDAN, this round is designed specifically for helicopter routes. Greater helicopter penetration will help boost tourism, hospitality, and thus, local economies.

-Till date 46 helicopter routes have been operationalized under previous rounds of the scheme benefitting a number of hilly and North East states. This round is targeting coverage of a much larger number of routes.