Union Budget 2025: UDAN to expand regional air connectivity with 120 new destinations

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 UDAN to expand regional air connectivity with 120 new destinations

The Finance Minister announced an enhanced regional connectivity scheme, extending air connectivity to 120 new destinations across India with increased support for helipads and smaller airports.

MUMBAI: An 'enhanced

regional connectivity scheme

' that will have

turboprop aircraft

or helicopters provide air connectivity to 120 new destinations across India was announced by the

Finance minister Nirmala Sitharaman

in her Union Budget 2025 speech on Saturday.
UDAN, 'Ude Desh ka Aam Naagrik', is a regional connectivity scheme under which the govt offers incentives to airlines to operate flights to mofussil areas of the country.

“UDAN enabled 1.5 crore middle-class people to meet their aspirations for speedier travel. The scheme connected 88 ports, airports, and operationalised 619 routes. Inspired by that success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years,” the Finance minister said. She added that an additional 4 crore passengers will board UDAN flights in the next 10 years. “The scheme will also support helipads and smaller airports in hilly, aspirational, and northeast regional districts,” she said.
Speaking about airports, she said greenfield airports will be facilitated in Bihar to meet the future needs of the state. Currently, the UDAN scheme covers nine airports in Maharashtra, which are Kolhapur, Jalgaon, Solapur, Amravati, Nanded, Nasik, Ratnagiri, Gondia, and Sindhudurg.

Out of these, six airports: Kolhapur, Jalgaon, Nanded, Nasik, Gondia, and Sindhudurg have already been operationalised. By March 2024, Rs 644 crore was allocated for 33 aerodromes.
Airlines operating regional connectivity flights under the UDAN scheme do not have to pay landing and parking charges, payable to the airport operator or Terminal Navigation Landing Charges, payable to govt-run Airports Authority of India.
AAI also gives a discount on the Route Navigation and Facilitation Charge (RNFC). Then again, for the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2%.
For UDAN flights, 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, according to the civil aviation ministry.
An airport which is included in the awarded routes of UDAN and requires upgradation/development for commencement of UDAN operations is developed under the 'Revival of unserved and underserved airports' scheme. As of March 2024, 76 RCS airports, including 2 water aerodromes and 9 heliports, have been operationalised under the UDAN scheme, according to govt data. The scheme flew more than 133 lakh passengers.
Last year, under the scheme for 'Revival and development of airports, heliports, and water aerodromes' for making airports operational, in Phase-I of the Scheme, Rs 4500 crore was allocated for this purpose, out of which Rs 3985.22 crore was utilised by March 2024.
The first UDAN flight took off on April 27, 2017, connecting the hills of Shimla to the metropolis of Delhi.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.

Article From: timesofindia.indiatimes.com
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