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Civil Aviation Ministry prepares plan to seek funds for UDAN

Friday, 31 May 2019
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The Union Ministry of Civil Aviation has prepared a proposal seeking additional funds for the Centre's flagship scheme Ude Desh ka Aam Nagrik (UDAN).

The additional fund requirement is to bridge the deficit expected in executing the UDAN scheme. It is being submitted for approval of the competent authority. Assuming that operations begin on all the routes where a contract has been awarded for providing regional connectivity, the available funds will not be enough.

An Airports Authority of India (AAI) team implementing the UDAN scheme has estimated the total subsidy of about Rs 1,800 crore-Rs 2,000 crore annually if all 688 routes awarded so far become operational. The ticket price has been capped at Rs 2,500 on RCS routes connecting smaller towns.

In the first round of UDAN bidding, the government in March 2017 awarded 128 routes to five airlines for 43 unserved destinations. As many as 325 routes were awarded to 15 select airline operators in January 2018 under RCS-2.

The ministry in January 2019 awarded 235 routes comprising 189 routes under RCS and 46 tourism routes across 29 states in the country to airlines under Phase-III of the scheme.

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