GS 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.

Why in News?

The union Minister for Civil Aviation and Commerce announced the results of Phase 3 bidders under Ude Desh Ka Aam Naagrik (UDAN) Scheme.

UDAN 3 Scheme Features:

  • Inclusion of Tourism Routes under UDAN 3 in coordination with the Ministry of Tourism.
  • Inclusion of Seaplanes for connecting Water Aerodromes.
  • Bringing in a number of routes in the North-East Region under the ambit of UDAN.

UDAN Scheme:

  • It is an innovative scheme to develop the regional aviation market.
  • It is a market-based mechanism in which airlines bid for seat subsidies.
  • This first-of-its-kind scheme globally will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man.
  • It envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. The operators could seek a Viability Gap Funding (VGF) apart from getting various concessions. The scheme also provides for various benefits including no airport charges and three-year exclusivity on the routes.
  • The States have a key role under the scheme. The selection of airports where UDAN would start would be done in consultation with State Government and after confirmation of their concessions.
  • The UDAN is likely to a give a major fillip to tourism and employment generation in the hinterland.
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