UDAN scheme is making air travel affordable
ECONOMY & POLICY

UDAN scheme is making air travel affordable

The Indian aviation landscape has undergone a significant transformation under the UDAN (Ude Desh ka Aam Nagrik) scheme, as the number of operational airports in the country doubled from 74 in 2014 to 157 in 2024 and the aim is to increase this number to 350-400 by 2047, the government said on Sunday. Domestic air passengers have more than doubled in the past decade, with Indian airlines significantly expanding their fleets. Spearheaded by the Ministry of Civil Aviation (MoCA), UDAN aims to enhance regional air connectivity from unserved and underserved airports across India, making air travel affordable for the masses. "As it celebrates its seventh anniversary, UDAN stands as a testament to the commitment of the Indian government to improve infrastructure and connectivity, especially in remote regions," the ministry added. Regional carriers such as Flybig, Star Air, IndiaOne Air, and Fly91 have benefited from the scheme, developing sustainable business models and contributing to a burgeoning ecosystem for regional air travel. Notably, Indian carriers have placed orders for over 1,000 aircraft slated for delivery in the next 10-15 years, significantly augmenting the existing fleet of approximately 800 planes. The first UDAN flight took off on April 27, 2017, connecting the serene hills of Shimla to Delhi. UDAN operates on a market-driven model, where airlines assess demand on specific routes and submit proposals during bidding rounds. According to the ministry, the government has implemented several supportive measures to attract airlines to operate flights in less lucrative markets. Airport operators have waived landing and parking charges for Regional Connectivity Scheme (RCS) flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied. For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports was capped at 2 per cent. Airlines are also encouraged to enter code-sharing agreements to expand their reach. "States have committed to reducing VAT on ATF to 1 per cent or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates," the ministry informed. 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.

The Indian aviation landscape has undergone a significant transformation under the UDAN (Ude Desh ka Aam Nagrik) scheme, as the number of operational airports in the country doubled from 74 in 2014 to 157 in 2024 and the aim is to increase this number to 350-400 by 2047, the government said on Sunday. Domestic air passengers have more than doubled in the past decade, with Indian airlines significantly expanding their fleets. Spearheaded by the Ministry of Civil Aviation (MoCA), UDAN aims to enhance regional air connectivity from unserved and underserved airports across India, making air travel affordable for the masses. As it celebrates its seventh anniversary, UDAN stands as a testament to the commitment of the Indian government to improve infrastructure and connectivity, especially in remote regions, the ministry added. Regional carriers such as Flybig, Star Air, IndiaOne Air, and Fly91 have benefited from the scheme, developing sustainable business models and contributing to a burgeoning ecosystem for regional air travel. Notably, Indian carriers have placed orders for over 1,000 aircraft slated for delivery in the next 10-15 years, significantly augmenting the existing fleet of approximately 800 planes. The first UDAN flight took off on April 27, 2017, connecting the serene hills of Shimla to Delhi. UDAN operates on a market-driven model, where airlines assess demand on specific routes and submit proposals during bidding rounds. According to the ministry, the government has implemented several supportive measures to attract airlines to operate flights in less lucrative markets. Airport operators have waived landing and parking charges for Regional Connectivity Scheme (RCS) flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied. For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports was capped at 2 per cent. Airlines are also encouraged to enter code-sharing agreements to expand their reach. States have committed to reducing VAT on ATF to 1 per cent or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates, the ministry informed. 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.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000