The Union Cabinet on Wednesday has approved modification in the UDAN Scheme for a period of ten years with an outlay of Rs 28,840 crore.
Under the new scheme 100 new airports will be developed with a total outlay of Rs 12,159 crore over the next eight years., Ashwini Vaishnaw, I&B and Railways Minister said during the press conference. In addition the modified scheme also proposes developing 200 modern helipads at Rs15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years
Given the high recurring O&M costs and limited revenue streams for Regional Connectivity Scheme (RCS)-only aerodromes, the Scheme proposes to provide O&M support for three years capped at Rs 3.06 crore per annum per airport and Rs 90 lakh per annum per heliport/water aerodrome, estimated at Rs.2,577 crore for around 441 aerodromes.
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Under the Regional Connectivity Scheme, airline operators receive financial support in the form of VGF for operating awarded routes. The government recognising the need for longer market development has proposed VGF support to airline operators amounting to Rs 10,043 crore over 10 years.
The scheme also proposes to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
The original UDAN Scheme was launched in October 2016 with the objective of making air travel affordable and strengthening connectivity to Tier-2 and Tier-3 cities.
Over nine years of implementation 663 routes have been operationalised across 95 airports, heliports and water aerodromes. More than 3.41 lakh flights have been operated, carrying 162.47 lakh passengers. The scheme has fostered growth in regional airlines and diverse fleet operations, laying a strong foundation for the Modified UDAN Scheme.
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