Government to Revamp UDAN Scheme with Focus on Airport Readiness
AVIATION & AIRPORTS

Government to Revamp UDAN Scheme with Focus on Airport Readiness

The Indian government is set to revamp its regional air connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), by prioritising airport readiness before inviting airlines to bid for operating routes. Financial support for the development of unserved airports and airstrips across the country is expected to be a key focus in the upcoming budget, along with stricter assessments of route feasibility, according to sources. Launched in 2017 to boost air travel in the world’s fastest-growing aviation market, the UDAN scheme caps airfares and provides subsidies to airlines for operating on less frequented routes. However, the scheme has faced challenges, with only 60% of the original 615 routes currently operational. A report by the Comptroller and Auditor General (CAG) last year highlighted significant delays in reviving identified airports, with work initiated at only 61% of the planned sites. Airlines have raised concerns about financial burdens resulting from unready airports despite winning bids, as they incur costs from leasing planes and hiring staff. Under the scheme, airlines must commence flights within four months of winning a bid and enjoy a three-year exclusivity period on the routes, shielding them from competition. Remote airports also benefit from reduced aviation turbine fuel (ATF) tax rates and waived airport fees. The civil aviation ministry plans to propose extending the scheme beyond its initial 10-year term, which ends in 2026, to further support regional connectivity. (ET)

The Indian government is set to revamp its regional air connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), by prioritising airport readiness before inviting airlines to bid for operating routes. Financial support for the development of unserved airports and airstrips across the country is expected to be a key focus in the upcoming budget, along with stricter assessments of route feasibility, according to sources. Launched in 2017 to boost air travel in the world’s fastest-growing aviation market, the UDAN scheme caps airfares and provides subsidies to airlines for operating on less frequented routes. However, the scheme has faced challenges, with only 60% of the original 615 routes currently operational. A report by the Comptroller and Auditor General (CAG) last year highlighted significant delays in reviving identified airports, with work initiated at only 61% of the planned sites. Airlines have raised concerns about financial burdens resulting from unready airports despite winning bids, as they incur costs from leasing planes and hiring staff. Under the scheme, airlines must commence flights within four months of winning a bid and enjoy a three-year exclusivity period on the routes, shielding them from competition. Remote airports also benefit from reduced aviation turbine fuel (ATF) tax rates and waived airport fees. The civil aviation ministry plans to propose extending the scheme beyond its initial 10-year term, which ends in 2026, to further support regional connectivity. (ET)

Next Story
Infrastructure Urban

Teknovace, Remmers Forge Rs 3 Bn Deal for Global Coatings Hub

Teknovace has entered into a strategic global partnership with Germany-based Remmers Gruppe SE to build a large-scale, export-oriented wood coatings manufacturing platform in India. As part of the alliance, Remmers will make a strategic equity investment of Rs 3 billion to acquire a 50.01 per cent stake in Teknovace in two tranches, marking one of the largest foreign strategic investments in India’s wood coatings sector.The partnership comes at a time when India’s wood coatings market, valued at around $1.3 billion (Rs 100 billion), is growing at an estimated 11% annually, driven by demand..

Next Story
Infrastructure Urban

Jyoti Structures Commissions Galvanisation at Second Nashik Unit

Jyoti Structures has commissioned galvanisation operations at its second tower manufacturing unit in Nashik, strengthening its in-house capabilities across critical stages of power transmission infrastructure production. The listed Engineering, Procurement and Construction (EPC) company operates globally and has delivered projects for customers across more than 50 countries.The second Nashik unit, with an annual manufacturing capacity of 36,000 metric tonnes, has become operational following the completion of installation, testing and readiness of the new galvanising facilities. With this deve..

Next Story
Infrastructure Energy

Rosatom Connects First Kursk NPP-2 Unit to National Grid

Rosatom has launched the first power unit of the Kursk Nuclear Power Plant-2 (Kursk NPP-2) into Russia’s Unified Energy System, marking a key milestone in the country’s nuclear energy programme. The initial grid connection took place at the end of the year, bringing a new source of low-carbon electricity online for the Kursk region and the broader Central Energy System.The newly commissioned unit is the first implementation of the VVER-TOI reactor design, which incorporates advanced safety and performance features. With an installed capacity of 1,250 MW, it is the most powerful nuclear pow..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App