UDAN 5.5 Launched

Context: The Centre has launched the next phase of its flagship UDAN (Ude Desh ka Aam Naagrik) scheme. UDAN 5.5 intends to promote last-mile connectivity in remote regions, hilly areas, and island territories.

Relevance of the Topic:Prelims: Key facts about UDAN Scheme.

About UDAN (Ude Desh ka Aam Nagrik) Scheme: 

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  • Launched by the Ministry of Civil Aviation for regional airport development and regional connectivity enhancement. It is a part of the National Civil Aviation Policy 2016.
  • Objectives:
    • To improve the air connectivity to remote and regional areas of India.
    • To make flights accessible and affordable in tier-2 and tier-3 towns. 

Key Features of UDAN scheme: 

  • Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500per hour of flight. This would be achieved through:
    • A financial stimulus in the form of concessions from Central and State governments and airport operators.
    • Viability Gap Funding (VGF): A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.
      • Regional Connectivity Fund (RCF): created to meet the viability gap funding requirements under the scheme.
    • The partner State Governments would contribute a 20% share to this fund.
      • UTs and NER states shall contribute only 10%.
  • UDAN created a framework based on the need and led to the formulation of:
    • Lifeline UDAN: for transportation of medical cargo during pandemic.
    • Krishi UDAN: value realization of agriculture products especially in Northeastern Region {NER} and tribal districts.
    • International UDAN routes for NER to explore International Connectivity from/to Guwahati and Imphal.

Previous Phases of the Scheme

  • Phase 1:
    • Launched in 2017
    • Objective: Connect underserved and unserved airports in the country.
  • Phase 2:
    • Launched in 2018
    • Aim: Expand air connectivity to more remote and inaccessible parts of the country.
  • Phase 3:
    • Launched in November 2018
    • Focus: Enhancing air connectivity to hilly and remote regions of the country.
  • Phase 4:
    • Launched in December 2019
    • Focus: Connecting islands and other remote areas of the country.
  • Phase 5:
    • Launched in 2023
    • Focus on Category-2 (20-80 seats) and Category-3 (>80 seats) aircrafts.
    • No restriction on the distance between the origin and the destination of the flight.
    • VGF to be provided will be capped at 600 km stage length for both Priority and Non-Priority area.
      • Earlier capped at 500 km.

The Latest phase: UDAN 5.5

  • UDAN 5.5 intends to promote last-mile connectivity in remote regions, hilly areas, and island territories.
  • Focus: Routes that will be serviced exclusively with sea-planes, choppers, and small aircraft with a seating capacity of less than 20 passengers.
  • Operators will get a chance to chart seaplane routes between 80 water bodies, which include waterdromes, ponds, and dams.
  • Around 400 helipads are also included in the scheme for operators to map out chopper routes.
  • Allows the participation of operators of aircraft in categories such as:
    • Category ‘1A’: seat less than nine passengers.
    • Category ‘1’: less than 20 passengers.

Achievements under UDAN Scheme: 

  • Expanded air connectivity:
    • UDAN has provided air connectivity to more than 29 States/ UTs across the country.
    • It has provided a fair amount of air connectivity to Tier-2 and Tier-3 cities at affordable airfares and has transformed the way travelling was done earlier.
    • Facilitated the travel of around 1.5 crore passengers across more than 2.8 lakh flights.
  • Increased routes:
    • Operationalised 619 routes, including helicopter routes.
  • Increasing airports:
    • The number of operational airports in the country has doubled from 74 in 2014 to more than 157 in 2024.
  • Reaching the last-mile:
    • 68 underserved/unserved destinations which include 58 Airports, 8 Heliports & 2 Water Aerodromes have been connected under UDAN scheme.
  • The new scheme has attracted players who want to start seaplane services across the Andaman and Nicobar island chain, among other potential routes.

Scope for further development under UDAN: 

  • Present Situation:
    • At present, there are no seaplane services in India.
    • The number of small aircraft in the A1 category number is less than 20.
  • Over the next five years, Industry estimates forecast:
    • Creation of over 50 seaplane routes 
    • Development of around 20-25 aerodromes 
    • Requirement of around 30 aircrafts.  
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