Lok Sabha Question No. 1054 (UNSTARRED), answered on 2024-02-08
Subject: Enhancement of Regional Air Connectivity
Ministry: CIVIL AVIATION
Asked by: P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## Lok Sabha

UNSTARRED QUESTION NO. : 1054

( TO BE ANSWERED ON THE  8th February 2024 )

## ENHANCEMENT OF REGIONAL AIR CONNECTIVITY

1054.    SHRI P.C. MOHAN

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a)  the  initiatives  undertaken  by  the  Government  to  enhance  regional  air
- connectivity in different parts of the country;
- (b)  the  details  of  measures  taken/being  taken  to  attract  more  airlines  to operate  flights  to  underserved  and  unserved  airports  to  promote  greater accessibility for passengers;
- (c)  the  manner  in which the Government ensures equitable development of airport infrastructure across various States, considering the varying demands and requirements of different regions; and
- (d)  the  progress  of  the  Ude  Desh  ka  Aam  Nagrik  (UDAN)  scheme  and  its
- impact on promoting regional air travel and tourism?

## ANSWER

## Minister of State in the Ministry of CIVIL AVIATION      (GEN. (DR) V. K. SINGH (RETD))

- (a):  Ministry  of  Civil  Aviation  (MoCA)  has  launched  Regional  Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) on 21.10.2016 to enhance regional  air  connectivity  from  unserved  and  underserved  airports  in  the country  and  make  air  travel  affordable  to  the  masses.  UDAN  is  a  market driven scheme. Interested airlines, based on their assessment of demand on particular routes, submit their proposals at the time of bidding under UDAN.
- (b):  With  a  view  to    attract    airlines  to  operate  flights  to  underserved  and unserved airports, support  is provided in the form of Viability Gap Funding (VGF) and also other concessions  by  the airport operators, Central Government and  State Governments, which are as under: ;

## Airport operators:

- i) Airport operators not to  levy Landing and Parking Charges on RCS Flights.
2. ii) AAI  not to levy any Terminal Navigation Landing Charges (TNLC) on RCS Flights.
3. iii) Route Navigation and Facilitation Charges (RNFC) to  be levied by AAI on a discounted basis @ 42.50%
4. of Normal Rates on RCS Flights.
5. iv) Selected  Airline  operators  (SAO)    allowed  self-ground handling  for operations under the Scheme at all airports.

## Central Government:

- i)  Excise Duty at the rate of 2% to be levied on Aviation Turbine Fuel (ATF) purchased by SAOs from RCS

Airports for initial period of three years from the date of notification of this scheme.

- ii)  SAOs to have the freedom to enter into code sharing arrangements with both domestic as well as international airlines.;

## States Governments :

- i)  reduce VAT to 1% or less on ATF at RCS Airports located within the states for a period of 10 years.
2. ii) provide minimum land, if required, free of cost and free from encumbrances for development of RCS

Airports and provide multi-modal hinterland connectivity as required.

- iii) provide security and fire services free of cost at RCS Airports.
- iv)  providing  or  cause  to  be  provided,  electricity,  water  and  other  utility services at substantially concessional rates at RCS Airports.
- v)  provide  a  certain  share  (20%  for  States  other  than  North-Eastern  States and 10% for States North-Eastern States) of determined VGF.

(c) : UDAN is a demand-driven scheme, wherein airline operators assess the feasibility  of  operation  on  a  particular  route  and  submit  bids  under  the scheme from time to time. An airport which is included in the awarded routes of UDAN and requires upgradation/development for commencement of UDAN operations,  is  developed  under  the  'Revival  of  unserved  and  underserved airports'  scheme.  On  the  basis  of  five  rounds  of  biddings,  76    airports, including  2  water  aerodromes  and  9  Helipads  in  different  regions  of  the country, have been developed and operationalised by RCS flights. The RCS

scheme also mandates Regional Connectivity Fund allocation to regions in a manner  that  promotes  balanced  growth  /  regional  connectivity  in  different parts of the country.

(d): 519  routes have been operationalised since inception of the RCS- UDAN Scheme.  The    routes  include,  53  tourism  routes  and  48  helicopter  routes connecting hilly regions of the nation; More than 133.86 lakh passengers have benefited from the UDAN flights. 2.56 lakh flights have operated under the UDAN scheme so far. The UDAN scheme has encouraged procurement of different type of aircraft in the country. Presently, 3 seater Tecnam, 9 seater Cessna 208B, 19 seater Twin Otter, 50 seater Embraer 145, 42/72/78 seater ATR and Q-400 as well as bigger aircraft like 189 seater Airbus 320/321and B737 are in operation for UDAN flights. 13  Airlines  have  commenced  operations  under  UDAN  ,  including  start-ups. UDAN  scheme  has  been  the  cradle  for  birth  of  new  Airlines  like  Air  Taxi, IndiaOne, Star Air, FlyBig and Fly91. UDAN  has  become  a  game  changer  for  many  airports  by  triggering  air connectivity and regional growth.

- ******