Lok Sabha Question No. 914 (UNSTARRED), answered on 2020-02-06
Subject: New Routes under RCS Scheme
Ministry: CIVIL AVIATION
Asked by: Vinod Kumar Sonkar, Sangeeta Kumari Singh Deo, Sukanta Majumdar, Raja Amareshwara Naik, Jayanta Kumar Roy, Bhola Singh

914.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

(To be answered on the February 2020) 6th

## NEW ROUTES UNDER RCS SCHEME

SHRI VINOD KUMAR SONKAR SHRIMATI SANGEETA KUMARI SINGH DEO DR SUKANTA MAJUMDAR SHRI RAJA AMARESHWARA NAIK DR. JAYANTA KUMAR ROY SHRI BHOLA SINGH

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government has recently launched the Regional Connectivity Scheme (RCS); Version 4.0 and if so, the details thereof;
- (b) whether the Government has introduced some new routes under the above RCS 4.0 and if the details thereof;
- (c) whether most of the routes have been withdrawn from various private Airlines under RCS 3.0 because of their inability to launch flights and if the details thereof; and
- (d) the other measures taken by the Government to attract more private airline operators for increasing air connectivity in the Country?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(a) and (b): The Government has commenced fourth round of bidding under Regional Connectivity Scheme (RCS)- UDAN (Ude Desh ka Aam Nagrik) RCS-UDAN is a market driven mechanism. Under the scheme, airlines assess demand and nature of supply required on particular route and based on their analysis , participate in the bidding process for operations under RCS UDAN: On completion of Ath round Of bidding process, route(s) connecting cities/towns will be awarded to Selected Airline Operators (SAOs) SAOs are

obligated to commence RCS flight operations on a RCS route within a period of six months from the issuance of Letter of Award or within two months from the readiness %f airport, whichever is later, unless any extension is granted by the Implementing Agency:

- (c): Out of the 335 routes awarded under RCS-UDAN 3.0, 18 routes have been cancelled due to non-compliance by SAOs:
- (d): Government has launched RCS UDAN on 21.10.2016 to stimulate regional air connectivity by making it affordable The steps taken by the Government to improve regional connectivity under RCS UDAN, are as under:
- ii; Financial incentives in terms of concessions from Central; State Governments and airport operators are extended to Selected Airline Operators to encourage operations from unserved/underserved airports/heliports/water aerodromes and to the air fare affordable. iii. "Support to the Selected Airline Operators in the form of Viability Funding (VGF) State Governments concerned provide 20% share towarag VGF for RCS flights pertaining to their states. However, the share of VGF for North-Eastern states and the Union Territories is 10%. keep Gap
- i. The RCS UDAN intends to enable air operations on unserved routes affordable for masses.
- iv Excise Duty at the rate %f 2% is levied Ou Aviation Turbine Fuel (ATF) drawn by Selected Airline Operators at RCS Airports for RCS Flights for 4 period of three (3) years from the date of commencement of RCS fight;
- v Regional Connectivity Fund (RCF) is created by levying Rs.500/- on each departure of flights O aircraft having MTOW (Maximum Take-Off Weight) above 40 Tonnes except for the departure of flights 0n routes in North East across five regions in the country viz  North; South; East; West and North East (with 4 cap of 30% in a given region)
- V The airlines are required to commit around 50% of the seats as ReS seats (limited to 40 seats) on RCS flights

viii. RCS-UDAN is a market driven mechanism. Development of regional air connectivity routes is left to market forces.The interested airlines Dased 0n their assessment %f demand O particular routes submit proposals at the time of bidding under RCS UDAN from time t0 time

Besides RCS-UDAN Government has also laid down Route Dispersal Guidelines (RDGs) with 4 view to achieve better air transport services to different regions Of the country: As per the RDGs; all scheduled operators are required to deploy in the North Eastern Region; Jammu & Kashmir, Ladakh; Andaman & Nicobar Islands, Himachal Pradesh, Uttarakhand, and trunk routes (Category-I routes) Further, the operator will deploy at least on required to deploy at least 35% of the capacity, deployed on Category-I routee

ecting with airlines are held regularly to encourage them to operate new flights. Also,