Indian Economy News

The Regional Connectivity Scheme (RCS) - Ude Desh Ka Aam Nagrik (UDAN) completed six successful years

The government-backed Regional Connectivity Scheme (RCS)- Ude Desh Ka Aam Nagrik (UDAN) - completes six years. Its goal is to develop infrastructure and connectivity throughout India, particularly in distant and neglected areas. With a 10-year vision, it is an essential part of India's National Civil Aviation Policy (NCAP), 2016, which was introduced by the Ministry of Civil Aviation (MoCA) on October 21, 2016.

On April 27, 2017, Prime Minister Mr. Narendra Modi launched the inaugural RCS-UDAN flight, which ran from Shimla to Delhi. Enhancing underutilised air routes in underprivileged areas of the nation and meeting the needs of regular people are the main objectives of the programme.

RCS-UDAN has successfully improved air travel accessibility, as evidenced by more than 130 lakh passengers it has assisted in transit to date.

Over the course of six years, various versions of the UDAN scheme were launched, including UDAN 1.0, wherein five airline companies were awarded 128 flight routes to 70 airports (including 36 newly opened operational airports). 73 underserved and unserved airports were announced, and for the first time, helipads were also connected through UDAN 2.0.

With UDAN 3.0, tourism routes were incorporated in accordance with the Ministry of Tourism planning. The programme covered a number of routes in the Northeast Region in addition to seaplanes that connected water aerodromes. While UDAN 4.0 gave impetus to the North-Eastern Regions, Hilly States, and Islands. The operation of helicopters and seaplanes was incorporated.

UDAN 5.0, which focuses on aircraft classified as Category-2 (20–80 seats) and Category-3 (>80 seats). In a similar vein, the 600 km cap has been lifted, meaning that the distance between the flight's origin and destination is unrestricted. In order to expedite the operationalization of awarded routes, this round gives priority to the routes that will link airports that are currently operational or will soon be. As a result, airlines would now have to start operating within four months of the route being awarded. They are happy about this change since it will enable them to more effectively plan their operations. Additionally, if the average quarterly PLF of the route, for four continuous quarters, is higher than 85%, the exclusivity for that route would be withdrawn, allowing for other airlines to also provide connectivity on the route.

UDAN 5.1 swiftly followed this. By expanding the range of operations available to helicopter operators, improving VGF, and lowering Airfare Caps, this round of RCS-UDAN is specifically tailored for helicopter routes. To increase the possible range of connectivity, the Scheme will now permit operations on routes as long as at least one origin or destination is a heliport and at least one origin or destination is in a priority area. To make flying cheaper for passengers, airfare limitations have been lowered and VGF caps have been increased to boost operator viability.

Bidding for UDAN 5.2 is now in progress with the goal of utilising small aircraft (<20 seats) to establish last-mile connection, boost the tourism industry, and improve connectivity to remote and regional areas of the nation. By enabling small aircraft operators to operate up to 40% of yearly quoted RCS seats and as few as 10% of annually quoted RCS seats in any one quarter, the Scheme will afford them more operational flexibility.

The civil aviation sector is expanding owing in part to RCS-UDAN, since four new and prosperous airlines have emerged in the past six years. The programme has aided in the establishment and creation of a viable business plan for airline operators. Additionally, it's giving tiny regional airlines like FlyBig, Star Air, and IndiaOne Air the chance to grow their operations, and their achievements show that the programme is fostering a friendly environment that is favourable to airline industry.

The gradual extension of the plan has led to a growing need for new aircraft while also expanding the range of aircraft that are being used. This upgrade includes a wide variety of aircraft, including helicopters, seaplanes, three-seat propeller planes, and jet planes. Currently operating on the RCS routes is a diverse fleet that includes Airbus 320/321, Boeing 737, ATR 42 and 72, DHC Q400 and Twin Otter, Embraer 145 and 175, and Tecnam P2006T. The increased demand for aircraft is supported by the orders placed by Indian carriers, which total more than 1,000 aircraft scheduled for delivery in the next ten to fifteen years. This amounts to a substantial addition to India's current fleet, which consists of about 700 aircraft flown by different airlines.

In addition to providing last-mile connectivity to tier-2 and tier-3 cities, RCS-UDAN is a significant player in the rapidly expanding tourism industry. In order to promote tourism, hospitality, and local economic growth, UDAN 3.0 established tourism routes that connected multiple locations in the Northeast region. Meanwhile, UDAN 5.1 is committed to growing helicopter services in hilly areas.

Destinations with significant significance in religious tourism, like Khajuraho, Deoghar, Amritsar, and Kishangarh (Ajmer), have been effectively connected by this project. The opening of the airports at Pasighat, Ziro, Hollongi, and Tezu has greatly increased accessibility and seen a significant boom in the Northeastern region's tourism business.

RCS-UDAN is linking 30 States/UTs around the nation, from Mundra, Gujarat, to Tezu, Arunachal Pradesh, and Hubli, Karnataka. Under UDAN, seventy-five airports have been operationalised. In the Northeast, eight airports are now functioning. Numerous airports that were operationalised under the UDAN, including Mysuru, Darbhanga, Hubli, Kannur, and others, have grown to be self-sufficient, with a large number of non-RCS commercial aircraft departing from them.

According to Mr. Jyotiraditya M. Scindia, Minister of Civil Aviation and Steel, six successful years of UDAN completion is a huge accomplishment for the aviation industry. This outstanding accomplishment demonstrates dedication to democratising the aviation industry and making air travel accessible to everyone. In the last six years, UDAN has empowered local economies, increased trade, and promoted tourism, unlocking our nation's genuine potential.

He further expressed his heartfelt gratitude to all the stakeholders, airlines, airport authorities, for their unwavering dedication in making UDAN a grand success.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.