New Delhi: Prime Minister Narendra Modi launched the Regional Connectivity Scheme (RCS) – UDAN, or ‘Ude Desh ka Aam Nagrik’, on 21st October 2016 to enhance regional air connectivity from unserved and underserved airports across India and help the countrymen enjoy affordable air travel. As it celebrates its seventh anniversary, let’s see how the UDAN scheme has helped to improve infrastructure, fueling growth in the aviation Industry, boosted air connectivity, promoted tourism, and connected remote regions across the country. The civil aviation ministry on October 20, 2024 informed that 601 routes and 71 airports have been operationalised under UDAN.
India Brand Equity Foundation (IBEF) said the aviation sector is growing in the country and the country would need over 2,200 aircraft by 2042 to cater to the increasing rush of passengers. It said that the ongoing more than 30 airport development projects in the Northeast would further enhance connectivity and infrastructure in the region.
Joshua Ng, Director at Alton Aviation Consultancy has also observed that “India has the right ingredients to make things happen, and they are going in the right direction. There are a lot of tailwinds in the Indian aviation sector. We do see a lot of activities, and it is just a start.”
With an aim to enhance regional air connectivity from unserved and underserved airports across India, and making air travel affordable for the masses, the Modi government has regularly continued incentivised the aviation sector through various initiatives, including 100 per cent exemptions for airport projects for 10 years and complete customs duty exemptions for MRO service providers.
100% FDI in air transport sector
The government has also given the green signal to 100 percent Foreign Direct Investment (FDI) via the automatic route for greenfield and brownfield projects underscores India’s commitment to attracting global investments in the aviation sector. FDI inflows in India’s air transport sector (including air freight) reached US$ 3.85 billion between April 2000 and March 2024. The government also has plans to abolish royalty and offer steep discounts in lease rent to encourage MRO units to set up facilities at its airports.
It may be recalled that PM Modi had said he wanted to see people wearing slippers boarding planes, and this commitment to the common man’s dreams led to the birth of UDAN. “A common man who travels in slippers, should also be seen in the aircraft. This is my dream,” PM Modi had said. The first UDAN flight took off on April 27, 2017. The plane travelled from Shimla to Delhi.
UDAN fuelled growth of Aviation Industry
The UDAN scheme has played an important role in expanding India’s aviation sector and all airlines, especially the regional carriers such as Flybig, Star Air, IndiaOne Air, and Fly91 have benefited from the scheme. With the expansion of the UDAN scheme over the years, it helped in generating a rising demand for new aircraft of all sizes. The opening of the new aviation routes led to demand for Airbus 320/321, Boeing 737, Cessna 208B Grand Caravan EX, Dornier 228, Airbus H130, and Bell 407, Tecnam P2006T, Twin Otter, Embraer 145, and 175, ATR 42 and 72, and DHC Q400.
UDAN Promoting Tourism
UDAN has helped in enhancing connectivity to tier-2 and tier-3 cities. The government launched UDAN 3.0 aimed at ‘tourism’ routes which connects 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.
Now people can easily travel via planes to religious tourism places like Kishangarh (Ajmer) Deoghar, Khajuraho, and Amritsar. The northeast region has also immensely benefitted with airports in Pasighat, Ziro, Hollongi, and Tezu. Agatti Island has also been included in the Indian aviation map, enhancing tourism in Lakshadweep, Ministry of Civil Aviation stated.
UDAN Boosting Air Connectivity
UDAN scheme has played a pivotal role in revitalising the civil aviation industry in India by connecting Mundra in Gujarat to Tezu in Arunachal Pradesh, and Kullu in Himachal Pradesh to Salem in Tamil Nadu. The Civil Aviation Ministry informed that RCS-UDAN has connected 34 states and Union Territories across the country.
“A total of 86 aerodromes have been operationalized under UDAN, including ten in the Northeast region and two heliports. Airports like Darbhanga, Prayagraj, Hubli, Belgaum, and Kannur are becoming increasingly sustainable, with many non-RCS commercial flights operating from these locations,” the release stated.
UDAN scheme was launched on October 21, 2016 by Prime Minister Narendra Modi-led government to enhance regional air connectivity and ensure affordability for citizens’ aspirations while stimulating economic growth and job creation. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
