The Regional Connectivity Scheme (RCS), also known as UDAN, has emerged as a transformative force in bolstering regional air connectivity across previously underserved and remote parts of India. Through five bidding rounds under the UDAN scheme, operations have commenced on 517 routes, linking 76 airports, including 9 Heliports and 2 Water Aerodromes. This initiative has led to the creation of over 130 city pairs, significantly enhancing accessibility for travelers.
A remarkable achievement of the UDAN scheme has been the operation of 2.47 lakh flights, catering to more than 130 lakh passengers. Such extensive operations signify the substantial impact this scheme has had on expanding air travel accessibility, particularly in regions that were previously isolated.
The scheme offers various concessions to different stakeholders:
For Airport Operators:
- Exemption from Landing and Parking Charges on RCS Flights.
- Waiver of Terminal Navigation Landing Charges (TNLC) by the Airports Authority of India (AAI) for RCS Flights.
- Levying Route Navigation and Facilitation Charges (RNFC) at a discounted rate of 42.50% of Normal Rates on RCS Flights.
- Selected Airline Operators (SAOs) allowed self-ground handling at all airports under the scheme.
For the Central Government:
- Imposition of Excise Duty at a reduced rate of 2% on Aviation Turbine Fuel (ATF) purchased by SAOs from RCS Airports for an initial three-year period.
- Freedom for SAOs to engage in code-sharing arrangements with domestic and international airlines.
For State Governments at RCS Airports:
- Reduction of Value Added Tax (VAT) to 1% or less on ATF at RCS Airports within their states for a ten-year period.
- Provision of minimum land, if required, free of cost and devoid of encumbrances for RCS Airports’ development.
- Ensuring free-of-cost security and fire services at RCS Airports.
- Provision or facilitation of electricity, water, and other utilities at substantially concessional rates at RCS Airports.
More than 130 lakh passengers have been direct beneficiaries of the UDAN scheme, experiencing increased accessibility and convenience in air travel across various regions of the country.
This comprehensive update on the impact and concessions provided under UDAN was provided by Gen. (Dr) V. K. Singh (Retd), the Minister of State in the Ministry of Civil Aviation, in response to a question in Lok Sabha today. The revelations underscore the scheme’s success in enhancing regional air connectivity and accessibility in remote areas, benefiting millions of passengers.