What is the UDAAN scheme of the government? What are its key features? Critically analyze its significance.
The UDAAN scheme of the government, also known as Ude Desh Ka Aam Nagrik is a scheme which aims at making flight services affordable for the masses. It also aims at making many small town airports in various states of the country operational by assisting various airlines to start operation from these small cities.
The key features of the scheme are:
- It is a market based mechanism in which the airlines will be allowed to bid for seat subsidies.
- It would provide connectivity to un-served and under-served airports of the country.
- The fare for one hour journey of approximate 500kms on a fixed wing aircraft would be capped at Rs. 2500 with proportionate pricing for different routes and flight durations.
- A regional connectivity fund would also be created to meet the funding requirements of the scheme.
Significance of the scheme:
- Many dysfunctional airports would become operational again.
- It would help boost tourism in various states and will help earn revenue.
- It would also help increase employment opportunities for the people in the states.
- It would help both the airlines and the passengers especially the common man since he would be able to travel at a relatively lower cost.
- The airport operators can expand their businesses based on different market based models.
Most of the states had demanded the revival of the dysfunctional airports from a long time. By the help of this scheme, their demands will be addressed to a large extent. The selection of the airports would be done in consultation with the state governments.