325 routes awarded under Govt’s UDAN scheme

NewsBharati    25-Jan-2018
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New Delhi, January 25: The government awarded 325 routes to airlines as well as helicopter operators under its regional connectivity scheme (RCS) with an emphasis on enhancing flight services to hilly and remote areas, including Kargil.

A total of 56 new airports and helipads are being connected to 36 existing ones. The routes have been awarded to 15 airlines and helicopter operators after the bidding process for second round of RCS, also known as UDAN (Ude Desh Ka Aam Nagrik), which aims to take flying to the masses. These include major domestic players such as SpiceJet, IndiGo, Jet Airways and Air India subsidiary Alliance Air.

The government provides viability gap funding or subsidy for 50 percent of the seats set aside for being offered at discounted rates by airlines and all seats up to 13 passenger seats for helicopters.

With the emphasis strongly on enhancing connectivity to remote and hilly terrain in the northeast and hill states, 40 per cent of the total routes awarded today at 129. The government has aimed to connect 41 airports and helipads in Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur and Uttarakhand.

“Since independence we had 75 airports in connected by scheduled airlines. UDAN 1 and 2 have added around 80 airports in the country. UDAN 2 has also addressed the problem of (poor air connectivity) to difficult areas,” Civil Aviation Minister Ashok Gajapathi Raju said at a media briefing.

He said that it was encouraging to see that many participants sought no subsidy.

“This tells us that the scheme is getting the desired result and that it will not require any subsidy after some time and is moving towards self-sustainability,” Raju added.

“There were a total 117 million passenger trips in 2017. The number of seats being added because of UDAN 1 and 2 is 50 lakhs. This year we will fly 120-130 million passenger trips. So, if you look at the seats we have added (under UDAN) it is 3-4 per cent of the total. But since these are vitally important because they are bring connectivity to a large number of remote areas,” Sinha said.

In order to fund the subsidy, Airports Authority of India will also be providing partial contribution from its dividend share, in addition to the levy of Rs 5000 per flight being imposed on non-RCS operations.

AAI has given Rs 200 crore for RCS in the current fiscal, and is likely to contribute Rs 500 crore in the next fiscal. The second round of RCS will need VGF of Rs 620 crore, while the first round required Rs 213 crore.

UDAN scheme aviation regional connectivity scheme RCS UDAN Ude Desh Ka Aam Nagrik Ashok Gajapathi Raju