Lok Sabha Question No. 2800 (UNSTARRED), answered on 2019-12-05
Subject: UDAN Scheme
Ministry: CIVIL AVIATION
Asked by: Anto  Antony

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO: : 2800 (To be answered on the December 2019) Sth

## UDAN SCHEME

2800\_

SHRI ANTO ANTONY

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government is implementing a scheme called 'UDAN'=
- the details and the number of airports included under the scheme and the number of services started thereunder;
- (b) if so, the details and the salient features thereof;
- (d) whether the scheme is economically viable to the operators and if $O, the details thereof; and
- (e) whether Air India is operating under the scheme and if s0, the details thereof including the sectors?

## ANSWER

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

(Shri Hardeep Singh Puri)

- (a) to (c): Government has launched Regional Connectivity Scheme (RCS), UDAN (Ude Desh ka Aam Nagrik) on 21.10.2016 to stimulate regional air connectivity by making it affordable. The salient features of the scheme are as under:
- i. The RCS UDAN intends to enable air operations on unserved routes connecting regional areas, promote balanced regional growth and make flying affordable for masses.
- 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 keep the air fare affordable
- iii. Support to the Selected Airline Operators in the form of Viability Funding (VGF): State Governments concerned provide 20% share towards VGF for RCS flights pertaining to their states However, the share of VGF for Gap

North-Eastern states and the Union Territories is 10%.

iv. Excise Duty at the rate of 2% is levied on Aviation Turbine Fuel (ATF) drawn by Selected Airline Operators at RCS Airports for RCS Flights for a period of three (3) years from the date of commencement of RCS flight.

- V The airlines are required to commit around 50% of the seats as RCS seats (limited to 40 seats) on RCS flights.
- vi. Regional Connectivity Fund (RCF) is created by levying Rs.5000/- On each departure of flights on aircraft having MTOW (Maximum Take-Off Weight) above 40 Tonnes except for the departure of flights on routes in North East Region, Himachal Pradesh, Uttarakhand; Union Territories of Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands and Lakshadweep Islands.
- vii. For balanced regional growth, route allocations are spread equitably across five regions in the country viz. North, South, East; West and North East (with a cap of 30% in a given region)\_

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

Under RCS UDAN 688 RCS routes have been awarded the Implementing Agency:  Out of which, 232 RCS routes have been commenced so far. Detaiis of the unserved and underserved RCS airports where RCS operations have started are attached as Annexure-I. by

- (d): Promoting affordability of regional air connectivity is envisioned under RCS by supporting Selected Airline Operators (SAOs) through concessions by Central Government; State Governments/UTs and airport operators to reduce the cost of airline operations on regional routes and financial (Viability Gap Funding or VGF) support to meet the gap, if any, between the cost of airline operations and expected revenues\_on such RCS routes Central Government and State Governments share VGF in the ratio of 80:20 whereas for the States in North-Eastern region Union Territories (UT's) the ratio is 90:10. Various concessions  inter-alia provided by the stakeholders concerned under RCS are as follows:

## 1. Central Government :

- i) Excise Duty at the rate of 2% o ATF for Selected Airline Operators at RCS Airports for RCS Flights for a period of three (3) years from the date of commencement of the RCS flight, during the currency of the Scheme:
2. ii) Freedom to enter into code sharing arrangements with domestic as well

as international airlines pursuant to applicable regulations and prevailing air service agreements.

## 2. State Governments at RCS Airports within their States:

- i) Reduction of VAT to 1% or less on ATF at RCS Airports located within the State for a period of ten (10) years from the date of notification of this Scheme.
2. iii) Provision of minimum land, if required, free of cost and free from all encumbrance s for development 0 f RCS Airports/Water Aerodromes/Heliports and also provide multi-modal hinterland connectivity as required
3. ii) Provision of security and fire services free of cost at RCS Airports:
4. iv) Provision of electricity, water and other utility services at substantially concessional rates at RCS Airports/Water Aerodromes/Heliports either directly or through appropriate means.

## 3. Airport Operators:

- 1) Airport operators do not levy Landing Charges and Parking Charges
2. iii) Airports Authority of India (AAI) does not levy any Terminal Navigation Landing Charges (TNLC) on RCS Flights
3. ii) SAOs are allowed to undertake ground handling for their RCS Flights at all airports.
4. iv) Route Navigation and Facilitation Charges (RNFC) are levied by AAI on a discounted basis at 42.50% of Normal Rates on RCS Flights:
5. (e): MIs Airline Allied Services Limited (Alliance Air), subsidiary of Air India is operating under RCS UDAN. Details of the routes awarded to Alliance Air under RCS UDAN is attached as Annexure-II:

## Annexure-I

## Statement referred to in reply of Lok Sabha Unstarred Q No: 2800 for answer on 05.12.2019

## List of unserved/underserved RCS Airports started till 02.12.2019 under RCS-UDAN

| S No   | State            | Airport                   |
|--------|------------------|---------------------------|
| 1      | Andhra Pradesh   | Kadapa (Underserved)      |
| 2      | Assam            | Jorhat (Underserved)      |
| 3      |                  | Lilabari (Underserved)    |
| 4.     |                  | Tezpur (Underserved)      |
| 5.     | Chhattisgarh     | Jagdalpur                 |
| 6.     | Daman & Diu      | Diu (Underserved)         |
| 7 .    | Gujarat          | Bhavnagar (Underserved)   |
| 8.     |                  | Jamnagar (Underserved)    |
| 9      |                  | Kandla                    |
| 10     |                  | Mundra                    |
| 11_    |                  | Porbandar (Underserved)   |
| 12     |                  | Shimla                    |
| 13     | Himachal Pradesh | Kullu                     |
| 14.    |                  | Belgaum (Underserved)     |
| 15_    | Karnataka        | Hubli (Underserved)       |
| 16_    |                  | Mysore_                   |
| 17.    |                  | Vidyanagar                |
| 18_    |                  | Kalaburagi (Gulbarga)     |
| 19     | Kerala           | Kannur                    |
| 20_    | Madhya Pradesh   | Gwalior (Underserved)     |
| 21     | Maharashtra      | Jalgaon                   |
| 22     |                  | Kolhapur                  |
| 23     |                  | Nanded                    |
| 24     |                  | Ozar (Nasik)              |
| 25.    | Meghalaya        | Shillong (Underserved)    |
|        | Odisha           | Jharsuguda                |
| 27_    | Pondicherry (UT) | Pondicherry (Underserved) |

| S No   | State         | Airport                 |
|--------|---------------|-------------------------|
| 28     | Punjab        | Adampur                 |
| 29     | Punjab        | Bhatinda                |
| 30     | Punjab        | Ludhiana                |
| 31.    | Punjab        | Pathankot               |
| 32     | Rajasthan     | Bikaner                 |
| 33_    | Rajasthan     | Jaisalmer               |
| 34.    | Rajasthan     | Kishangarh              |
| 35_    | Sikkim        | Pakyong                 |
| 36.    | Tamil Nadu    | Salem                   |
| 37     | Uttar Pradesh | Agra (Underserved)      |
| 38_    | Uttar Pradesh | Allahabad (Underserved) |
| 39     | Uttar Pradesh | Kanpur(Chakeri)         |
| 40_    | Uttar Pradesh | Hindon                  |
| 41_    | Uttarakhand   | Pantnagar (Underserved) |
| 42_    | Uttarakhand   | Pithoragarh             |
| 43     | West Bengal   | Durgapur(Underserved)   |

## STATEMENT  REFERRED To IN THE REPLY OF LOK SABHA UNSTARRED QUESTION NO. 2800 FOR ANSWER ON 05.12.2019

## List of routes awarded to Alliance Air under RCS UDAN

|     | Departure Airport   | Arrival Airport   |
|-----|---------------------|-------------------|
| 1   | Vishakhapatnam      | Kalaikunda        |
| 2   | Guwahati            | Dimapur           |
| 3   | Patna               | Bokaro            |
| 4   | Jagdalpur           | Hyderabad         |
| 5_  | Jagdalpur           | Raipur            |
| 6_  | Raipur              | Jagdalpur         |
| 7   | Raipur              | Jharsuguda        |
| 8   | Delhi               | Bhatinda          |
| 9_  | Delhi               | Bikaner (NAL)     |
| 10. | Delhi               | Ludhiana          |
| 11_ | Delhi               | Pathankot         |
| 12_ | Delhi               |                   |
| 13  | Delhi               | Kota              |
|     | Goa                 | Mysore            |
| 15_ | Ahmedabad           | Kandla            |
| 16. | Ahmedabad           | Ozar(Nasik)       |
| 17. | Kandla              | Ahmedabad         |
| 18. | Keshod              | Mumbai            |
| 19  | Shimla              | Delhi             |
| 20. | Dharamshala         | Chandigarh        |
| 21  | Jammu               | Bhatinda          |
| 22_ | Bokaro              | Kolkata           |
| 23. | Bokaro              | Patna             |

| S. No.   | Departure Airport   | Arrival Airport                    |
|----------|---------------------|------------------------------------|
| 24.      | Dumka               | Kolkata                            |
| 25.      | Dumka               | Ranchi                             |
| 26       | Ranchi              | Dumka                              |
| 27.      | Hazaribagh          | Kolkata                            |
| 28.      | Bangalore           | Kolhapur                           |
| 29       | Hubli               | Hyderabad                          |
| 30.      | Bangalore           | Kalaburgi(Gulbarga)                |
| 31.      | Belgaum             | Pune                               |
| 32       | Kalaburgi(Gulbarga) | Bangalore                          |
| 33.      | Mysore              | Cochin International Airport(CIAL) |
| 34.      | Mysore              | Goa                                |
| 35_      | Mysore              | Hyderabad                          |
| 36.      | Bangalore           | Mysore                             |
| 37       | Mysore              | Bangalore                          |
| 38.      | Cochin              | Mysore                             |
| 39_      | Gwalior             | Delhi                              |
| 40.      | Gwalior             | Indore                             |
| 41_      | Indore              | Gwalior                            |
|          | Kolhapur            | Bangalore                          |
| 43.      | Kolhapur            | Hyderabad                          |
| 44.      | Ozar(Nasik)         | Ahmedabad                          |
| 45.      | Ozar(Nasik)         | Hyderabad                          |
| 46_      | Sholapur            | Hyderabad                          |
| 47.      | Amravati            | Mumbai                             |
| 48_      | Mumbai              | Amravati                           |

|     | Departure Airport   | Arrival Airport   |
|-----|---------------------|-------------------|
| 49. | Mumbai              | Keshod            |
| 50. | Pune                | Belgaum           |
| 51. | Mumbai              | Ratnagiri         |
|     | Mumbai              | Sindhudurg        |
| 53. | Nasik               | Pune              |
| 54. | Pune                | Nasik             |
| 55. | Ratnagiri           | Mumbai            |
| 56  | Sindhudurg          | Mumbai            |
| 57. | Imphal              | Dimapur           |
| 58  | Dimapur             | Guwahati          |
| 59. | Dimapur             | Imphal            |
| 60. | Bhubaneshwar        | Jharsuguda        |
| 61. | Bhubaneshwar        | Kalaikunda        |
| 62_ | Bhubaneshwar        | Rourkela          |
| 63. | Jharsuguda          | Bhubaneshwar      |
| 64. | Jharsuguda          | Kolkata           |
| 65. | Jharsuguda          | Raipur            |
| 66. | Rourkela            | Bhubaneshwar      |
| 67_ | Bhubaneshwar        | Varanasi          |
| 68_ | Bhatinda            | Delhi             |
| 69  | Ludhiana            | Delhi             |
| 70. | Pathankot           | Delhi             |
|     | Bhatinda            | Jammu             |
| 72_ | Chandigarh          | Dharamshala       |
| 73_ | Bikaner             | Delhi             |
| 74. | Jaipur              | Agra              |
| 75. | Bikaner             | Jaipur            |

| S.No.   | Departure Airport   | Arrival Airport   |
|---------|---------------------|-------------------|
| 76_     | Jaipur              | Bikaner           |
| 77.     | Kota                | Delhi             |
| 78.     | Hyderabad           | Hubli             |
| 79.     | Hyderabad           | Kolhapur          |
|         | Hyderabad           | Ozar(Nasik)       |
| 81_     | Hyderabad           | Sholapur          |
| 82_     | Hyderabad           | Jagdalpur         |
| 83.     | Hyderabad           | Mysore            |
| 84.     | Agra                | Jaipur            |
| 85_     | Varanasi            | Bhubaneshwar      |
| 86.     | Gorakhpur           | Lucknow           |
| 87      | Lucknow             | Gorakhpur         |
| 88      | Dehradun            | Pantnagar         |
| 89      | Pantnagar           | Dehradun          |
| 90.     | Kolkata             | Bokaro            |
| 91_     | Kolkata             | Dumka             |
| 92_     | Kalaikunda          | Bhubaneshwar      |
| 93_     | Kalaikunda          | Vishakhapatnam    |
| 94.     | Kolkata             | Jharsuguda        |
| 95_     | Kolkata             | Hazaribagh        |