New Delhi: The Centre will extend financial support under the UDAN regional connectivity scheme from three years to five years in a phased manner, a move aimed at providing airlines with longer-term viability to operate regional routes, said Union Civil Aviation Minister Ram Mohan Naidu.
While speaking with on the sidelines of the UDAN workshop, the Minister noted that the Indian government offered an outlay of Rs 29,000 crores for the next 10 years, which will likely create a solid ecosystem of civil aviation across the country.
Launched in 2016, UDAN is the Government of India’s regional connectivity scheme aimed at making air travel affordable and accessible to the common citizen.
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Highlighting the focus on expanding connectivity, the minister said India is adding aviation infrastructure at a rapid pace.
“We are creating airports every single month; we are creating either a new terminal or a new airport in the country, but now we have to look forward to how we improve the connectivity.”Naidu noted that the scheme was initially conceived for a 10-year period, which has now been completed. He added that the revamped UDAN scheme, which was recently launched for another 10 years by Prime Minister Narendra Modi in Jodhpur, has generated strong interest within the aviation industry.
“Today, from the ministry, we have conducted a workshop for the UDAN scheme, which is going to be extended for the next 10 years. This has been launched by our Honourable Prime Minister on the 4th of July in Jodhpur, and there has been a lot of excitement in the civil aviation industry in the country on how we are going to implement it for the next 10 years.”
He further said the duration of viability gap funding for airlines operating regional routes will be increased from three years to five years under a tapered support structure.
“We are going to extend the scheme facility, which was earlier given for three years. Now we are going to do it for five years in a tapered approach. So starting from 100 per cent in the first two years, then 75 per cent, 50 per cent and 25 per cent in the next three years,” he said.