Understanding the UDAN Scheme

The ‘Ude Desh ka Aam Nagrik (UDAN)’ scheme is a significant initiative by the Government of India aimed at enhancing regional air connectivity across the country.

Analyzing the Statements on UDAN Scheme

Statement 1: It is an innovative scheme to develop the regional aviation market.

This statement is correct. UDAN is indeed considered innovative because it focuses on connecting underserved and unserved airports through a market-based mechanism. It utilizes viability gap funding (VGF) to incentivize airlines to operate on routes that might not otherwise be commercially attractive. This approach directly contributes to developing and expanding the regional aviation market, making air travel accessible to a wider population.

Statement 2: It creates affordability yet economically viable and profitable flight on regional routes.

This statement is also correct. A core objective of the UDAN scheme is to make air travel affordable for the common citizen ('Aam Nagrik'). This is achieved by capping fares for a certain number of seats on UDAN flights. Simultaneously, the scheme aims to ensure that these regional routes are economically viable for airlines. The viability gap funding (VGF) provided by the government covers the difference between the cost of operations and the expected revenue, making it possible for airlines to operate these routes profitably despite the capped fares for some seats. Thus, it balances affordability for passengers with economic viability for operators.

Conclusion on UDAN Statements

Based on the analysis of both statements, it is clear that the UDAN scheme is designed to be an innovative approach to developing the regional aviation market while ensuring flights on regional routes are both affordable for passengers and economically viable for the airlines.

Therefore, both statements regarding the UDAN scheme are correct.

Revision Table: Key Aspects of UDAN

Additional Information on UDAN Scheme

The UDAN scheme operates under the National Civil Aviation Policy (NCAP) of 2016. It is a crucial part of India's infrastructure development push. The scheme identifies specific routes based on demand and proposals from airlines. Airlines bid for these routes, requesting the minimum VGF needed to operate. The scheme has multiple phases, leading to the addition of many new city pairs on the air map of India, boosting tourism, trade, and economic activity in regional areas.

• The scheme promotes connectivity to remote and regional parts of India.
• It encourages development of regional airports and infrastructure.
• It aims to make air travel accessible to the common people, not just the affluent.