Why in news
- Union Ministry of Civil Aviation announced a ₹28,840 crore commitment to support the UDAN scheme over the next 10 years.
What is the UDAN Scheme?
- Ude Desh ka Aam Nagrik (UDAN) was launched in 2016 as a Regional Connectivity Scheme (RCS) under the National Civil Aviation Policy.
- Operates via Viability Gap Funding (VGF) to subsidise airfares on unserved and underserved regional routes.
Details of New Commitment
- Allocates ₹28,840 crore over a 10-year horizon to construct new airstrips, helipads, and maintain operational VGF support.
- Aims to expand regional air coverage to tier-2, tier-3 cities, and remote hilly terrain.
Key terms
Viability Gap Funding
A central grant provided to infrastructure project developers or operators to bridge the gap between economic viability and financial costs.
Prelims facts
- UDAN relies on a regional connectivity fund financed primarily through a small levy on domestic major-route flights.
Mains discussion
- Assess the role of regional air connectivity initiatives in stimulating decentralised economic growth.
Source: Economic Times