UDAN 5.0: Following the 4 profitable rounds of bidding, the Ministry of Civil Aviation has launched the fifth spherical of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN) to further enhance the connectivity to remote and regional areas of the nation and obtain final mile connectivity. The Viability Gap Funding has been elevated to 600 km from 500 km earlier. The stage size cap of 600 km is waived off- no restriction on the gap between the origin and vacation spot of the flight.
Key Features of UDAN 5.0:
- This spherical of UDAN focuses on Category-2 (20-80 seats) and Category-3 (>80 seats).
- The earlier stage size cap of 600 km is waived off and there’s no restriction on the gap between the origin and vacation spot of the flight.
- Viability hole funding (VGF) to be supplied shall be capped at 600 km stage size for each Priority and Non-Priority areas which was earlier capped at 500 km.
- No predetermined routes could be supplied. Only Network and Individual Route Proposal proposed by airways shall be thought of.
- The airways could be required to submit an motion/marketing strategy after 2 months from the issuance of LoA whereby they submit their plane acquisition plan/availability of plane, crew, slots, and so forth. on the time of the Technical Proposal.
- The identical route won’t be awarded to a single airline greater than as soon as, whether or not in several networks or in the identical community.
- Exclusivity shall be withdrawn if the typical quarterly PLF is larger than 75% for 4 steady quarters, to stop exploitation of the monopoly on a route.
- 25% of the Performance Guarantee to be encashed for every month of delay up to 4 months, to further incentivize fast operationalization.
- Airlines could be required to begin operations inside 4 months of the award of the route. Earlier this deadline was 6 months.
- An inventory of airports which are prepared for operation or would quickly be prepared for operations has been included within the scheme to facilitate faster operationalization of routes below the Scheme.
- Novation course of for routes from one operator to one other is simplified and incentivized.
Commenting on the launch of UDAN 5.0, Union Minister Jyotiraditya Scinda stated, “UDAN has proved to be a lifeblood of many regions which are now well connected with places across the country. This new and stronger version of the scheme will raise the momentum, connecting new routes, and bring us closer to the target of operationalizing 1000 routes and 50 additional airports, heliports, and water aerodromes in the near future. अब उड़ेगा देश का हर आम नागरिक!”
About UDAN Scheme
The objective of UDAN scheme is to join small and medium-sized cities with main cities through air service. UDAN was aimed to meet the widespread citizen’s want of flying. Airlines compete for air routes and take part in bids. The contract is granted to an airline that bids for the bottom subsidy. The plan was to place small-town India on the map of aviation by encouraging airways to fly on regional routes. The Government launched National Civil Aviation Policy for the primary time in 2016, and the UDAN Scheme was essentially the most important part of this Policy. Prime Minister Narendra Modi launched the primary plane from Shimla to Delhi below the UDAN scheme in April 2017.
UDAN Scheme has benefitted a various set of stakeholders. Passengers have gotten the advantages of air connectivity, airways have acquired concessions for working regional routes, unserved areas have acquired the direct and oblique advantages of air connectivity for his or her financial growth. It is one other step in the direction of the prime minister’s imaginative and prescient of the widespread man touring by air at reasonably priced and backed airfares.
