Lok Sabha Question No. 21 (UNSTARRED), answered on 2023-07-20
Subject: Features of RCS-UDAN
Ministry: CIVIL AVIATION
Asked by: Kripanath Mallah

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 21

(To be answered on the 20 th  July 2023)

## FEATURES OF RCS-UDAN

## 21. SHRI KRIPANATH MALLAH

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the features of the Regional Connectivity Scheme (RCS) - Ude Desh Ka Aam Nagrik (UDAN);
- (b) the details of the funds sanctioned, allocated and utilized under this scheme within the country including Assam so far;
- (c) the details of the number of States being covered at present, under this
- scheme across the country;
- (d) the details of the target set and achievements made so far along with the
- response within Assam; and
- (e) whether the Government proposes to launch a new phase under this
- scheme and if so, the details thereof?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(GEN. (DR) V. K. SINGH (RETD))

- (a) : Ministry of Civil Aviation launched Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) on 21-10-2016 to stimulate regional air connectivity and make air travel affordable for the masses. The UDAN scheme envisages providing connectivity to unserved and underserved airports of the country through revival of the existing airstrips and airports. The scheme would be in operation for a period of ten years.The salient features of the UDAN scheme are as under:
- i)  The  Regional Connectivity Scheme - UDAN is designed to enable air operations on underserved / 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) Financial Support to the Selected Airline Operators is in the form of

Viability  Gap  Funding  (VGF).  State  Governments  provide  20%  share towards VGF for RCS flights pertaining to their states. However, the share of

VGF for 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. v) Airlines are required to commit certain number of the seats as RCS seats, depending on the type and size of aircraft, on RCS flights. vi) Regional Connectivity Fund (RCF) is created by a levy 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 scheme. Interested airlines based on their assessment of demand on particular routes submit proposals at the time of bidding under RCS - UDAN.

(b): Govt. of India has approved the Scheme for revival and development of un-served and under-served airports of State Govt., AAI, Civil Enclaves, CPSUs, Helipads and Water Aerodromes at the total cost of Rs.4500 crores. Further, the Government has also approved Rs. 1000 crore in the Budget 2023-24 for the revival and development of fifty additional aerodromes in the country.

As on 30.06.2023, an expenditure of Rs. 3367 crore has been incurred towards the revival and development of airports, heliports and water aerodromes under the UDAN scheme. For the state of Assam, an amount of  Rs.152.65 crore  has  been  allocated  and    Rs  108.25  crore  has  been  spent  for  the development of airports, heliports and water aerodromes, as on 30.06.23.

(c): On the basis of the four rounds of bidding under UDAN, Airports/Water Aerodromes/Helipads in  32 States/UTs have been identified for operation of RCS flights in the country.

(d): The Government has set a target to operationalise 1000 UDAN routes during the currency of the scheme and to revive/develop 100 unserved & underserved airports/heliports/water aerodromes in the country by 2024 for operation of UDAN flights.

479 UDAN routes involving 74 Airports/Heliports/Water Aerodromes have been operationalised as on 12.07.2023 across the country including four airports in Assam namely Rupsi, Jorhat, Lilabari and Tezpur airports. 44 routes have been operationalised connecting the Airports in the state of Assam.

(e)  :  The  Government  has  launched  UDAN 5.0 on 21.04.2023 and also launched UDAN round 5.1 on 24.05.2023 to provide air connectivity to unserved and underserved destinations of the country.

- *****