UDAN: Aam Nagrik Soaring to Greater Heights!

"The UDAN (Ude Desh ka Aam Nagrik) Scheme has fuelled the civil aviation sector to soar to greater heights time and again", states the Ministry of Civil Aviation. On November 17, 2024, according to the Ministry, India’s aviation sector reached a historic milestone as 5,05,412 domestic passengers took to the skies in a single day, marking the first time daily passenger numbers crossed the 5-lakh mark. "In a country where the sky symbolizes hope and aspiration, the dream of affordable flying became a reality with the launch of UDAN (Ude Desh ka Aam Nagrik) on October 21, 2016."

UDAN's Success

With over 3,100 flights operating nationwide, this achievement highlights India’s growing prominence in the global aviation landscape. The UDAN scheme has been instrumental in this transformation, operationalizing 609 routes, including helicopter services, and seamlessly connecting states and Union Territories across the country.

Creating a Difference

Spearheaded by the Ministry of Civil Aviation, the scheme has transformed air travel by enhancing regional connectivity and making it accessible to millions. With continuous advancements like helicopter routes and last-mile connectivity, UDAN has bridged the gap between aspirations and accessibility, reshaping India’s aviation landscape. This progress has now culminated in a milestone, showcasing the scheme's far-reaching impact.

The Dream Takes Flight

The story of UDAN is deeply rooted in the vision of Prime Minister Narendra Modi, who, in a pivotal meeting before the National Civil Aviation Policy was announced, emphasized the need to democratize air travel. He famously remarked that he wanted to see people wearing slippers boarding planes, a sentiment that ignited the vision for a more inclusive aviation sector. This commitment to the common man’s dreams led to the birth of UDAN.

The first UDAN flight took off on April 27, 2017, connecting the serene hills of Shimla to the bustling metropolis of Delhi. This inaugural flight marked the beginning of a transformative journey in Indian aviation, one that would open up the skies to countless citizens. Over the past seven years, the UDAN Scheme has evolved through various phases to enhance regional air connectivity in India. Starting with UDAN 1.0 in 2017, which awarded 128 flight routes and operationalized 36 new airports, the scheme progressed with UDAN 2.0, adding helipad connectivity and underserved airports. UDAN 3.0 introduced tourism routes, seaplanes, and a focus on the North-East. UDAN 4.0 expanded operations to hilly regions, islands, and helicopters. The UDAN 5.0 series (5.0 to 5.4) brought major advancements, including removing distance caps, prioritizing operational airports, boosting helicopter and small aircraft connectivity, and reactivating discontinued routes, ensuring last-mile air connectivity and affordability across India.

A Market-Driven Approach

UDAN operates on a market-driven model, where airlines assess demand on specific routes and submit proposals during bidding rounds. The scheme incentivizes airlines to connect underserved regions by offering them support through Viability Gap Funding (VGF) and various concessions provided by airport operators, the Central Government, and State Governments.

Support Mechanisms

The government has implemented several supportive measures to attract airlines to operate flights in less lucrative markets:

• Airport Operators: They waive landing and parking charges for RCS flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied.
• Central Government: For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2%. Airlines are also encouraged to enter code-sharing agreements to expand their reach.
• State Governments: States have committed to reducing VAT on ATF to 1% or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.

This collaborative framework has fostered an environment where airlines can thrive while serving regions that have long been overlooked.

Fuelling Growth

The RCS-UDAN scheme has played a pivotal role in revitalizing the civil aviation industry in India. Over the past seven years, it has catalyzed the emergence of many new and successful airlines. Regional carriers such as Flybig, Star Air, IndiaOne Air, and Fly91 have benefited from the scheme, developing sustainable business models and contributing to a burgeoning ecosystem for regional air travel.

The incremental expansion of the scheme has also generated a rising demand for new aircraft of all sizes, broadening the spectrum of planes deployed on RCS routes. This includes a diverse fleet, featuring the Airbus 320/321, Boeing 737, ATR 42 and 72, DHC Q400, Twin Otter, Embraer 145 and 175, Tecnam P2006T, Cessna 208B Grand Caravan EX, Dornier 228, Airbus H130, and Bell 407. Notably, Indian carriers have placed orders for over 1,000 aircraft slated for delivery in the next 10-15 years, significantly augmenting the existing fleet of approximately 800 planes.

Promoting Tourism

RCS-UDAN is not solely dedicated to offering last-mile connectivity to tier-2 and tier-3 cities; it also stands as a prominent contributor to the burgeoning tourism sector. Initiatives like UDAN 3.0 have introduced tourism routes connecting several destinations in the Northeast region, while UDAN 5.1 is focused on expanding helicopter services in hilly areas to stimulate tourism, hospitality, and local economic growth.

Significant destinations like Khajuraho, Deoghar, Amritsar, and Kishangarh (Ajmer) are now more accessible, catering to the religious tourism segment. Furthermore, the introduction of airports in Pasighat, Ziro, Hollongi, and Tezu has spurred growth in the Northeast’s tourism industry. Notably, Agatti Island has also been included in the Indian aviation map, enhancing tourism in Lakshadweep.

Soaring High: Some UDAN Airports

• Darbhanga Airport (Civil Enclave): Once off the aviation map, Darbhanga celebrated the arrival of its first flight from Delhi on November 9, 2020. This airport now serves as a gateway for 14 districts in North Bihar, connecting to major cities like Delhi, Mumbai, Hyderabad, and Kolkata, and handling over 5 lakh passengers in FY 2023-24.
• Jharsuguda Airport (AAI Airport): Previously a dilapidated WWII airstrip, Jharsuguda became operational in March 2019, serving as the second airport in Odisha. It now connects the region to Delhi, Kolkata, Bengaluru, and Bhubaneswar, with over 2 lakh passengers in FY 2023-24.
• Pithoragarh Airport: Nestled in the Himalayas, this airport was identified for RCS operations in 2018 and began service in January 2019. Currently, it connects to Dehradun and Pantnagar, showcasing its strategic importance.
• Tezu Airport: Known for its scenic beauty and religious significance, Tezu airport commenced RCS operations in August 2021. It connects Guwahati, Jorhat, and Dibrugarh, accommodating approximately 12,000 passengers in FY 2023-24.

On October 20, 2024, Prime Minister Shri Narendra Modi inaugurated three new airports under the RCS UDAN scheme: Rewa in Madhya Pradesh, Ambikapur in Chhattisgarh, and Saharanpur in Uttar Pradesh.