Context:
The Union Cabinet has approved a Modified UDAN Scheme with an enhanced outlay to improve regional aviation connectivity across India.
Key Highlights:
- Financial Outlay:
- ₹10,043 crore subsidy allocation over 10 years
- Infrastructure Development:
- ₹12,159 crore for redevelopment of 100 unused airstrips
- ₹3,661 crore for building 200 helipads in remote areas
- Policy Changes:
- Subsidy support extended from 3 years → 5 years
- Focus on Tier-II and Tier-III cities
- Objective:
- Enhance regional connectivity
- Promote affordable air travel
- Improve last-mile connectivity
- Challenges Identified:
- Low demand in regional routes
- High cost sensitivity among passengers
- Competition from rail and road transport
Relevant Prelims Points:
- UDAN (Ude Desh ka Aam Nagrik):
- Launched in 2016 under National Civil Aviation Policy
- Objective: Make air travel affordable and accessible
- Viability Gap Funding (VGF):
- Government provides subsidies to airlines for unviable routes
- Regional Connectivity Scheme (RCS):
- Promotes flights to unserved and underserved airports
- Last-mile Connectivity:
- Final link connecting remote areas to transport networks
Relevant Mains Points:
- Significance of Regional Connectivity:
- Promotes balanced regional development
- Boosts tourism, trade, and investment
- Enhances national integration
- Economic Challenges:
- Limited passenger base in smaller cities
- High operational costs for airlines
- Dependence on subsidies → sustainability concerns
- Infrastructure Bottlenecks:
- Many airstrips lack modern facilities
- Need integration with multimodal transport
- Governance Issues:
- Inefficient route selection
- Delays in infrastructure execution
- Way Forward:
- Improve demand forecasting and route planning
- Integrate UDAN with rail, road, and tourism networks
- Encourage private sector participation
- Focus on regional economic hubs
- Ensure gradual reduction of subsidy dependence
UPSC Relevance:
• GS 3: Infrastructure, Economy – Aviation sector
• GS 2: Governance – Policy implementation challenges
• Prelims: UDAN scheme features, VGF concept