UDE DESH KA AAM NAAGRIK (UDAN)/REGIONAL CONNECTIVITY SCHEME (RCS)

UDE DESH KA AAM NAAGRIK (UDAN), the Regional Connectivity Scheme, is the most innovative policy in Indian aviation. See how this process is making flying cheap and accessible so as to help millions, revitalize regional airports, and link India as never before.

Table of Contents

Introduction

Regional Connectivity Scheme (RCS) known as ‘Ude Desh Ka Aam Nagrik’ (UDAN) is one of the flagship schemes of the Government of India which look forward to making the Air Connectivity better and easier for the common man. Approved as a part of the National Civil Aviation Policy (NCAP) which was launched on October 21, 2016, the aim of the scheme is to unfold new infrastructure and connectivity mostly in the unconnected ounder-connecteded areas of the country. In this article, the author attempts to discuss the main goals of the scheme, its results, main difficulties and further potential of the UDAN scheme.

India is a country blessed with a variety of geography and people and has been a witness to geographical issues from time immemorial. This last challenge has remained to be the thorny issue of connectivity especially in the remote and underdeveloped regions. Fully aware of this, the Government of India introduced a fantastic program, the Ude Desh Ka Aam Nagarik (UDAN) or Regional Connectivity Scheme (RCS). This rather audacious agenda seeks to democratize commercial aviation to create an informed travelling public, thus economic productivity of regions.

What is UDAN?

UDAN is a prominent scheme of the Government of India to build the regional aviation industry by providing connectivity to those airports which have poor or negligible connectivity at present. They simply target using flight as a means of transport for the larger population by setting upper limits in the number of tickets to be sold at relatively high prices. The scheme also provides a blueprint for the growth of regional airports and increase carriage of passengers to other remote and regional part of the country.

Objectives of UDAN

The primary goals of the UDAN scheme are:The primary goals of the UDAN scheme are:

Enhancing Air Connectivity: The scheme therefore has the objective of enhancing the accessibility of air services to Small and Remote and Regional areas so that those areas that are hard to get aervice can also be well served.
Affordable Air Travel: Through ₹2,500 for one hour of flight the citizen becomes capable of using air services without having financial issues and that is the reason why the scheme capped airfares at ₹2,500.
Economic Development: The policy is aimed at creating awareness of hitherto unrecognized tourism, trade and commercial attractions of localities.
Job Creation: Being an improvement on the connectivity and opening new opportunities for tourism, the scheme also supports the direct employment in aviation and related businesses.
Last-Mile Connectivity: In the same point, UDAN also aims at connectivity to the unserved and underserved airports in tier-2 and tier-3 cities, thus linking them with a comprehensive transport system.

How UDAN Works

The central government of India has set up UDAN as a demand side funded scheme to promote regional connectivity. Flight operations are contracted by a competitive bidding process in which airlines are called to offer the services on the identified routes. The government offers a number of public promos to airlines such as viability gap funding, CENVAT credit facility and airport development fee. In exchange, the carriers are charged with the obligation to restrict the maximum fare for some seats.

Key Features of UDAN

Airfare capping: This is to mean that airlines have been directed to set a maximum price for 50 percent of the seats in each flight.
Viability gap funding: This is due to the fact that the government subsidizes the airlines so as to ensure the business operates profitability.
Airport development: To enhance the infrastructure, the government spends resources in the development of regional airports.
Regional connectivity: Of note is that the scheme targets the unserved as well as the under served airports fully.

Impact of UDAN

UDAN scheme has introduced the positive changes in aviation industry of India and also in the development of the particular regions. Some of the key benefits include:Some of the key benefits include:

Increased air connectivity: UDAN has contributed levelling up the air connectivity in the hinterland and the off beat places.
Economic growth: It has led to growth of economy in regional areas through encouraging tourism and trade.
Job creation: This has contributed towards generation of employment in the aviation sector through UDAN.
Social development: Health, education and other important amenities have enhanced by the existence of the scheme meaning that access has been made easier.

Achievements of UDAN

Since its inception, the UDAN scheme has made significant strides:

Passenger Growth: It is quantifiably evidenced by number of passengers who have traveled under this scheme which totals to over 13 million in six years pointing to positive changes occasioned by the scheme in improving air access.
Operational Airports: Out of the intended number, the scheme has rationalised 75 airports to date, with eight of the airports located in the northeastern sector. Airports such as Darbhanga, Hubli, Kannur etc. have become almost fully operational with hundreds of other non-RCS commercial flights.
Multiple Versions: The UDAN scheme was initially unveiled in the Union Budget of 2015–16 and has gone through changes over the years:

UDAN 1. 0: Started it operation with 128 flight routes covering 70 airports.
UDAN 2. 0: Defined links to helipads.
UDAN 3. 0: Aimed at the tourism corridors especially in the North East region.
UDAN 4. 0: Special focus on reaching areas consisting of hilly states and islands.
UDAN 5. 0: Lifted the restriction to 600km and concentrated on greater categories of airplanes.

Challenges and Opportunities

Challenges Faced by UDAN

Despite its successes, the UDAN scheme faces several challenges:

Commercial Viability: Several routes that have been presented under the scheme are perceived to be deadly of low returns and therefore reluctant to be explored by the airlines. This makes it difficult to make a profit on some routes, even with subsidies in place, an airlines must strategize.
Infrastructure Constraints: For lack of infrastructure some airports are unable to expand their capacity to accommodate the increasing traffic and the dictates of safety standards.
High Operating Costs: Airlines that operate in the rural areas thus have to confront some overhead costs such as fuel and maintenance that can be costly impacting on the business success.
Awareness and Demand: One such problem is the awareness levels of the potential passengers about the opportunities that are provided under the UDAN scheme with regards to air travel in the regions where it is being implemented and with this there is lack of demand and equal lack of utilization of regional airlines.
Sustainability Issues: While there have been valuable offerings in the context of airport development and provision of connections, the long term viability of many routes on the scheme is questionable and prone to this instability and operational pressures.
Nevertheless, those obstacles are also the strong prerequisites that are to foster the development of the newspaper and bring it new novelties. These challenges can be overcome by government offering support to the airlines, increase investment in airports and encouraging flying through campaigns.

Future Prospects

To ensure the continued success of the UDAN scheme, several steps can be taken:

Enhancing Infrastructure: The key challenges that will have a bearing on the future sustainability of the scheme will therefore consist of The Upgrade schemes of facilities at airports to safety and operational Standards.
Promoting Awareness: Passengers can be created awareness about the UDAN scheme flight availability which may increase the traffic and usage.
Addressing Commercial Viability: The government could consider ways on how to continue providing subsidies to certain routes that do not seem to be viable enough to sustain airlines .
Collaborative Efforts: The challenges should be addressed by the industry players, government and local authorities while at the same time improving on its efficiency.

Conclusion

UDAN is one of the most revolutionary measures, which is redefining the conditions of flight in India. Through making the air travel cheap and feasible for millions the scheme has made a very useful connection between the urban and the rural India. Thus, UDAN holds unprecedented opportunities – which, albeit not without certain barriers to be addressed, would still be a game-changer. With the growth of this scheme on the increase, the scheme is surely going to be a key player in the economic transformation of the country to that of a developed nation.

FAQ

The full form of UDAN is?

UDAN stands for Ude Desh Ka Aam Nagarik.

how does UDAN work and make air travel affordable between these tier 2/3 cities?

The UDAN scheme ensures to make air travel affordable by capping the airfares for a certain number of seats per flight.

What is the Objective of UDAN?

According to the official statement, UDAN enhance air connectivity and boosts economic growth._UDAN also have potential to create jobs as well.

But what are the challenges which UDAN faces?

However, simultaneously UDAN also faces the challenges of infrastructure development, viability of airlines and demand generation.

What more can be done to make UDAN grow Big?

So, for the future prospects of this plan more support to airlines, investment in airport infrastructure and promotion of air travel can be helpful.