Civil Aviation Ministry Seeks Additional Fund for UDAN Scheme: Report

The additional fund will clear the deficits existing in executing the scheme.

By June 1st, 2019 AT 4:10 PM
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  • The airlines providing services under UDAN scheme are eligible to receive subsidies for tax rates, waiver of airport charges, and other concessions.

Prime Minister Narendra Modi may increase the budget of UDAN (Ude Desh ka Aam Naagrik), the regional connectivity scheme in his second term, according to The Economic Times.

The Civil Aviation Ministry has already contacted the Government with a proposal for additional funds, the report said. The additional fund will clear the deficits existing in executing the scheme.

International Travel from India

As per UDAN scheme, 688 routes are awarded so far. An Airports Authority of India (AAI) team implementing the UDAN scheme has estimated the total subsidy of about INR 1,800-2,000 crore annually for making all 688 routes operational.

Under the first bidding held in March 2017, the Government offered 128 routes to five airlines for 43 unserved airlines. In the second round of allocation held in January 2018, 15 airline operators received 325 routes. In January 2019, the Civil Aviation Ministry awarded 235 routes comprising of 189 routes under RCS and 46 tourism routes across 29 states.

Also Read: Madhya Pradesh’s Devi Ahilya Bai Holkar Airport Gets Approval for International Operations

UDAN scheme targets at making air travel affordable and widespread for the common man. The ticket price has been capped at INR 2500 on RCS routes connecting regional areas. The airlines providing services under UDAN scheme are eligible to receive subsidies for tax rates, waiver of airport charges, and other concessions.

As many airlines are increasing their fleet size, more additions can be expected on regional routes in the coming months.

Alliance Air restored Mysuru-Bengaluru Flight Under UDAN scheme

Alliance Air, a subsidiary of Air India, had been operating flights between Bengaluru and Mysuru for a few years before the service was stopped. The service will be re-launched on June 7 under UDAN scheme. The airline will operate flights five days a week starting from June 2019. There will be no service on Tuesdays and Thursdays.

The flight will leave Bengaluru at 10 a.m. and reach Mysuru at 11.25 a.m. The return flight leaves Mysuru at noon and reach Bengaluru by 1 p.m. The ticket price starts from INR 1500 per person.

The re-launch of service between the two cities is expected to increase tourist footfalls, and also business travellers.

Also Read: IndiGo’s Profit Soars Five Times, Records INR 590 Crore in Q4

Ria is a lead news writer at Aviation Scoop. She writes from dawn to dusk, reads in the evenings, and draws at some ungodly hours. She loathes human interaction, and finds solace in the sweet, musky smell of old books, and rain. Find her on Twitter here - @rialakshman.

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