Why in news
- The flagship Regional Connectivity Scheme (RCS-UDAN) completed ten years of implementation.
- The government reported facilitation of 1.72 crore passengers with ₹5,091 crore disbursed as Viability Gap Funding.
Key terms
Viability Gap Funding
One-time or deferred grant provided to support infrastructure projects that are economically justified but financially unviable.
Unserved Airport
An airport where there have been no scheduled commercial flight operations for a specified period.
Regional Connectivity Fund
A dedicated fund financed through a small levy on scheduled domestic flights to fund VGF under UDAN.
National Civil Aviation Policy 2016
The parent policy framework designed to boost regional connectivity, safety, and domestic aviation growth.
What is the UDAN Scheme?
- Launched in 2016 under the National Civil Aviation Policy by the Ministry of Civil Aviation.
- Aims to enhance regional air connectivity to unserved and underserved airports across the country.
- Operates on a market-driven mechanism where airlines bid for specific regional routes.
Key operational provisions
- Financial support provided through Viability Gap Funding (VGF) shared between Central and State governments.
- Airfares capped for 50% of seats on flight operations covering a distance of roughly 500 km or 1-hour flight duration.
- Concessions provided by airport operators and tax waivers on Aviation Turbine Fuel (ATF) by participating States.
Why it matters
- Promotes balanced regional development, tourism, and infrastructure growth in Tier-2 and Tier-3 cities.
- Provides exam-relevant evidence on public-private partnership models and infrastructure subsidy efficiency.
Prelims facts
- RCS-UDAN is funded through a levy on domestic flights deposited into the Regional Connectivity Fund.
- VGF support is capped and provided for a limited duration of three years per route.
Mains discussion
- Evaluates the role of subsidized regional aviation infrastructure in reducing regional economic disparities.
Source: LiveMint
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q66 · General Studies · 2 marks
Which of the following connectivity projects is/are a part of cooperation between India and the ASEAN member countries? 1. Kaladan Multi-Modal Transit Transport Project 2. IMT Trilateral Highway 3. Agartala-Akhaura Rail Line Select the answer using the code given below: -
2024 · Q12 · GS III · 15 marks
What is the need for expanding the regional air connectivity in India? In this context, discuss the government's UDAN Scheme and its achievements. -
2023 · Q10 · General Studies · 2 marks
With reference to India's projects on connectivity, consider the following statements: 1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat. 2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar. 3. Bangladesh-China- India-Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China. How many of the above statements are correct? -
2022 · Q6 · GS II · 10 marks
The Gati-Shakti Yojana needs meticulous coordination between the government and the private sector to achieve the goal of connectivity. Discuss. -
2026 · Q13 · GS I · 15 marks
The model of planned economy was adopted in India to address the regional imbalances left behind by colonial rule. Comment.