8 Years of Regional Connectivity Scheme (RCS) – UDAN

Syllabus: GS3/Infrastructure

Context

• The UDAN scheme has completed 8 years of Implementation.

About

• The Regional Connectivity Scheme (RCS) – UDAN (Ude Desh Ka Aam Nagrik) is a component of India’s National Civil Aviation Policy (NCAP) 2016, launched by the Ministry of Civil Aviation (MoCA) in 2016, with a 10-year vision.
• It aims to improve infrastructure and connectivity in India, especially in remote and underserved regions. 
• The first UDAN flight took off in 2017, connecting Shimla to New Delhi.

Features of the UDAN Scheme

• A Market-Driven Approach: Airlines assess demand on specific routes and submit proposals during bidding rounds.
  • The scheme incentivizes airlines to connect underserved regions by offering them support through Viability Gap Funding (VGF) and various concessions.
• Support Mechanisms: 
  • Airport Operators: They waive landing and parking charges for RCS flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights.
  • Union Government: For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports capped at 2%. 
  • State Governments: States have committed to reducing VAT on ATF to 1% or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.

Significance of the Scheme

• Fuelling Growth of the Aviation Industry: Over the past seven years, it has catalysed the emergence of many new and successful airlines.
  • It has also generated a rising demand for new aircraft of all sizes, broadening the spectrum of planes deployed on RCS routes. 
• Promoting Tourism: Initiatives like UDAN 3.0 have introduced tourism routes connecting several destinations in the Northeast region, while UDAN 5.1 is focused on expanding helicopter services in hilly areas to stimulate tourism, hospitality, and local economic growth.
• Boosting Air Connectivity: RCS-UDAN has connected 34 states and Union Territories across the country.
  • A total of 86 aerodromes have been operationalized, including ten in the Northeast region and two heliports. 
• Number of Airports Increased: The number of operational airports in the country has doubled from 74 in 2014 to 157 in 2024 and the aim is to increase this number to 350-400 by 2047. 

Conclusion

• UDAN is not just a scheme; it is a movement aimed at empowering every Indian with the gift of flight. 
• Enhancing regional connectivity and ensuring affordability has fulfilled countless citizens’ aspirations while stimulating economic growth and job creation. 
• The UDAN scheme remains a game changer for Indian aviation, contributing significantly to India’s vision of a connected and prosperous nation.

Source: PIB