GS Paper: GS3-13.Infrastructure: Energy, Ports, Roads, Airports, Railways etc:

Central Idea

• In the world of aviation, a transit hub serves as a crucial intermediary point for travelers making their way from one foreign country to another.
• It’s like a well-orchestrated stopover where passengers switch from one aircraft to another, aiming for a seamless journey.

What is a Transit Hub in Aviation?

• A transit hub is like a bridge in the sky, connecting travellers from one foreign destination to another with minimal fuss.
• It should offer a smooth experience for passengers moving from Country A to Country C via Country B.
• Such hubs usually rely on a major airline with an extensive network to provide one-stop flights, ideally with no more than a 2 to 3-hour wait between flights.
• Picture it as a hub-and-spoke model, where flights come together at the hub and then branch out to various destinations, making travel affordable and efficient.

Can India Become a Transit Hub?

• In 2018-19, Indian airlines managed 40.2% of air passenger traffic to and from India.
• This number has grown to 44% in 2022-23, while overseas airlines’ share has shrunk to 56%.
• India now boasts low-cost carriers for short and medium-haul international flights, including newcomers like Akasa.
• These trends signal India’s potential to become an economical transit hub, offering essential services to start.

Which Airlines could make it happen?

• Air India group and IndiGo are potential game-changers in turning India into a transit hub.
• Together, they have nearly 1,500 aircraft on order, with most being narrow-body planes capable of covering 5 to 8 hours of travel, including European destinations.

Any other player for transit hubs?

• The plan begins with New Delhi, where a collaborative effort between the government, Delhi airport, and airlines seeks to optimize the hub experience.
• Transit hubs are also in the works for Mumbai, Bengaluru, Hyderabad, and Kolkata, depending on flight origins.
• Mumbai could be an attractive stop for African travellers, while Delhi might serve Central Europe and West Asia.

Is there any Policy Support?

• The Ministry of Civil Aviation endorses the idea, urging airlines to offer more non-stop international routes.
• Airports and airlines are working to create larger spaces within airports for transit passengers.
• Initiatives might include dedicated terminals for international flights or large carriers to streamline travel.

Conclusion

• India’s aviation landscape is evolving, with a rising share of passenger traffic attributed to domestic airlines and the emergence of low-cost international carriers.
• The potential for India to become a transit hub is grounded in these shifting dynamics.

Central Idea

• The ambitious ₹72,000-crore Great Nicobar Project, proposed by the Union government, is facing environmental scrutiny as the number of trees expected to be felled has been revised to 9.64 lakh, higher than the previously estimated 8.5 lakh

What is GNI Project?

• The GNI Project refers to the “Holistic Development of Great Nicobar Island,” a proposed mega project being piloted by NITI Aayog.
• The project aims to develop the southern end of the Andaman and Nicobar group of Islands in the Bay of Bengal by constructing –

1. Transhipment port
2. Dual-use military-civil international airport
3. Power plant and
4. A township over a span of 30 years on more than 160 sq. km of land, of which 130 sq. km is primary forest

Features of the Project

• Transshipment hub of the East: The proposed port will allow Great Nicobar to participate in the regional and global maritime economy by becoming a major player in cargo transhipment.
• Naval control: The port will be controlled by the Indian Navy, while the airport will have dual military-civilian functions and will cater to tourism as well.
• Urban amenities: Roads, public transport, water supply and waste management facilities, and several hotels have been planned to cater to tourists.

Significance of the Project

The GNI Project holds both economic and strategic significance:

• Economic Significance: It positions Great Nicobar as a transhipment hub in the East, strategically located along the East-West international shipping corridor. This can potentially boost revenue and make India a significant player in cargo transhipment.
• Strategic Significance: The development of Great Nicobar has been deemed crucial for national security and consolidating India’s position in the Indian Ocean Region. The project serves as an oceanic outpost and addresses concerns over increased Chinese presence in the Indian Ocean.

Challenges and Concerns

• Biodiversity Threat: The project’s development, township construction, and influx of people may lead to habitat destruction and degradation, posing a threat to numerous species on the island.
• Indigenous Tribes Displacement: The project could displace two isolated and indigenous tribes, the Shompen and the Nicobaris, jeopardizing their way of life and cultural heritage.
• Deforestation Impact: Cutting down an estimated 9.64 lakh trees in prehistoric rainforests could significantly impact the island’s ecology and biodiversity.
• Inadequate Environmental Assessments: Concerns have been raised about the haste in obtaining clearances and the adequacy of environmental and social impact assessments.
• Fragile Topography: The region’s tectonic volatility and disaster vulnerability add to the challenges, particularly considering the 2004 Tsunami’s impact on tribal communities.

Major Concerns

• Tree Felling Estimate: Minister of State (Environment) Ashwini Kumar Choubey revealed that approximately 9.64 lakh trees may need to be cut down for the development in the Great Nicobar Project. However, there is a possibility that the actual number of trees felled could be lower.
• Environmental Consequences: The forest earmarked for development on the Great Nicobar Island is an evergreen tropical forest with high biological diversity, housing nearly 650 species of flora and 330 species of fauna.
• Compensatory Afforestation: To offset the tree felling, the government plans to carry out compensatory afforestation in Haryana. The state has agreed to provide an area of 261.5 square km for this purpose.
• Tribal concerns: The island administration did not grant forest land ownership to local tribespeople as required under the Forest Conservation Rules, 2017, raising concerns about consent and rights recognition.
• Inconsistencies with Stage-I Clearance: The approval process for the project faced delays, and claims over forest land under the FRA were not processed adequately.

Conclusion

• The Great Nicobar Project’s environmental concerns, including extensive tree felling, potential habitat destruction, and challenges related to tribal communities, call for a careful reconsideration of the project’s impact and approach.
• Striking a balance between economic development and environmental conservation is crucial, emphasizing sustainable practices and preserving the island’s rich biodiversity and cultural heritage.

Central Idea

• Union Civil Aviation Ministry inaugurated a new phase of the Ude Desh Ka Aam Nagrik (UDAN) scheme, or UDAN 5.2, to improve last-mile connectivity in remote regions of the country through small aircraft.
• There have been aspersions regarding the success of the UDAN regional connectivity scheme (RCS) since ONLY 11 of the 74 Greenfield airports are decently operational.

Progress till now

• Route Closures: Out of the 479 routes launched under RCS, 225 have ceased operations, leading to significant route closures.
• Commercial Viability: Around 70 of the routes were found to be commercially unviable even with subsidies, leading airlines to discontinue their operations.
• Three-Year Sustainability: The objective of RCS was for airlines to become self-sustaining after three years, but only 58 out of 155 routes completed this period successfully.
• Incomplete Infrastructure: Some airports, such as Thanjavur, Moradabad, Saharanpur, and Ayodhya, were not ready for operations, leading to the discontinuation of 12 routes.

What is UDAN Scheme?

• UDAN Scheme, initiated in 2016, aims to enhance aviation infrastructure and air connectivity in Tier II and Tier III cities.
• It was formulated based on the review of The National Civil Aviation Policy (NCAP)-2016, with the goal of fulfilling the aspirations of the common citizen.
• The scheme, designed to last for 10 years, operates with a self-financing mechanism through the establishment of the Regional Connectivity Fund (RCF).
• The RCF funds the viability gap funding (VGF) requirements of the scheme by levying certain domestic flights, thereby stimulating growth and development in the aviation sector.
• As part of the scheme, the Airports Authority of India has waived the airport fee.

Issues with the scheme

• Route Discontinuance: Some routes launched under UDAN have been discontinued, raising concerns about their sustainability.
• Challenges in Expansion: Efforts to improve connectivity to hilly regions and islands through helicopters and seaplanes have faced hurdles due to land unavailability and operational difficulties.
• Unrecovered since the Pandemic: The COVID-19 pandemic has adversely affected the aviation industry, further impacting the sustainability of airlines.

Various Challenges

• Financial Constraints: Many smaller airlines struggle with insufficient funds, making it difficult to maintain aircraft, pay rentals, and provide staff salaries.
• Maintenance Issues: Smaller players often have limited aircraft that are poorly maintained, and acquiring new planes is expensive.
• Pilot Availability: The availability of pilots can be a challenge for smaller airlines, leading to higher costs when hiring foreign pilots.
• Competition: Routes dominated by bigger domestic players like IndiGo and SpiceJet tend to see better success rates.

Way Forward

• Extended Subsidy Period: Airlines need an extension of the subsidy period to develop routes sustainably and achieve self-sufficiency.
• Addressing Pandemic Impact: The impact of the COVID-19 pandemic on travel restrictions and passenger safety should be considered when evaluating the losses incurred by airlines.
• Collaboration and Support: The government and stakeholders need to collaborate to address financial constraints and maintenance issues faced by smaller airlines.
• Continuous Evaluation: Regular evaluation and necessary adjustments in the UDAN scheme are essential to overcome challenges and ensure successful implementation.

Conclusion

• While India has made significant strides in airport development, challenges related to commercial viability and infrastructure readiness must be addressed to ensure sustainable air connectivity across the nation.
• Renewed focus on the UDAN scheme and optimizing airport infrastructure can pave the way for a robust aviation sector that benefits smaller cities and contributes to the overall growth of the nation’s economy.