Source: TH
Context:
Government revises UDAN Scheme with extended subsidy support
- Subsidy period increased from 3 to 5 years
- Shift from airfare levy to direct budgetary support
- Total outlay: ₹28,840 crore
- Aim: Revive underutilized Tier-2 and Tier-3 routes
What is UDAN Scheme?
- Launched in 2016 under:
- Ministry of Civil Aviation
- Objective:
- Enhance regional air connectivity
- Make air travel affordable
- Key idea:
- “Ude Desh ka Aam Nagrik” (common citizen can fly)
KEY CHANGES IN UDAN Scheme
Extension of Subsidy Period
- Earlier:
- 3 years viability gap funding (VGF)
- Now:
- Extended to 5 years
- Reason:
- Many regional routes became unviable after subsidy ended
Change in Subsidy Funding Mechanism
- Earlier:
- Funded through levy on airline tickets
- Now:
- Direct funding from government budget
- Impact:
- Reduces burden on passengers
- Improves financial sustainability
Increased Financial Outlay
- Total allocation:
- ₹28,840 crore
- Purpose:
- Strengthen regional connectivity infrastructure
- Support airlines on less profitable routes
Important For which Exam?
- UPSC Prelims (Schemes, Aviation Sector)
- State PCS Exams
- SSC Exams
MCQs
Q.1) What is the primary objective of the UDAN Scheme?
[1] Promote international tourism
[2] Improve regional air connectivity
[3] Develop metro rail networks
[4] Boost cargo exports
Q.2) Where is the UDAN scheme implemented?
[1] Only metropolitan cities
[2] Tier-2 and Tier-3 cities
[3] Only rural villages
[4] International routes
Q.3) What is the revised subsidy duration under the revamped UDAN scheme?
[1] 2 years
[2] 3 years
[3] 5 years
[4] 10 years
Q.4) What type of funding mechanism is now used for UDAN subsidies?
[1] Airline ticket surcharge
[2] State government grants
[3] Direct budgetary support from government
[4] Private airline investment
ANSWERS
1 → [2]
2 → [2]
3 → [3]
4 → [3]
Important For which Exam?
- UPSC
- State PCS Exams
- SSC
