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UDAN (Ude Desh ka Aam Naagrik) Scheme

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Context:

The UDAN (Ude Desh ka Aam Naagrik) scheme, launched in 2016 to boost regional air connectivity and make flying affordable, is facing critical challenges in achieving its objectives. The programme aimed to connect smaller towns and promote regional development through enhanced air travel.

About UDAN (Ude Desh ka Aam Naagrik)

Launched: 2016 by Government of India.

Ministry: Ministry of Civil Aviation (MoCA).

Objective:
  • Enhance regional air connectivity by making air travel affordable.
  • Connect smaller towns and cities to major hubs, boosting economic development.
Key Features:
  • Subsidized Fares: Capped airfares to make flying accessible to the common citizen.
  • Viability Gap Funding (VGF): Financial support for airlines to operate on unprofitable regional routes.
  • Airport Development: Focus on developing regional airports, particularly in underserved areas.
  • Route Selection: Prioritizes routes with low connectivity and high regional importance.

UDAN 2.0

  • Budget Announcement: The government promised 120 new destinations and 4 crore additional passengers over the next decade.
  • Cautionary Note: Without a fundamental policy rethink, UDAN 2.0 risks creating more “white elephant” airports, wasting public funds, and failing to spur regional economic growth.
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