Ministry of Civil Aviation launches UDAN 5.1

Central Idea

The Ministry of Civil Aviation has launched UDAN 5.1, an extension of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN), to enhance connectivity to remote areas of India.

This round specifically focuses on helicopter routes, aiming to achieve last mile connectivity.
It allows operators to operate routes where one of the origin or destination locations is in a priority area, such as hilly regions, islands, or North East states.

Expanded Scope of Operations: Operators can now operate routes where one of the origin or destination locations is in a priority area, compared to the previous requirement of both points being in priority areas.
Reduced Airfare Caps: Airfare caps for helicopter flights have been reduced by up to 25%, making flying in helicopters more affordable for passengers.
Increased Viability Gap Funding (VGF) Caps: VGF caps for operators using single and twin-engine helicopters have been substantially increased to enhance the financial viability of operating the awarded routes.
Coverage Expansion: UDAN 5.1 aims to cover a significantly larger number of routes compared to previous rounds, further extending the benefits of air connectivity to unserved regions.

Democratization of Air Travel and Last-Mile Connectivity: UDAN 5.1 reflects the deeper democratization of air travel, with a focus on providing last-mile connectivity to remote regions of India.
Consultations and Stakeholder Engagement: The current version of the scheme has been designed after extensive consultations with all stakeholders, including helicopter operators.

Successful Implementation: Ensure effective implementation of UDAN 5.1, considering the expanded scope of operations, reduced airfare caps, and increased VGF caps.
Collaboration with Operators: Foster collaboration and engagement with helicopter operators to optimize last-mile connectivity and promote the growth of the helicopter segment in the civil aviation industry.
Monitoring and Evaluation: Establish a robust monitoring and evaluation mechanism to assess the impact of UDAN 5.1 on remote regions, air travel affordability, and economic development.
Promoting Tourism: Leverage the increased helicopter penetration to boost tourism in remote areas, thereby supporting the hospitality industry and local economies.
Future Expansion: Continuously assess the potential for further expansion of the UDAN scheme, considering new routes and modes of transportation to improve connectivity to underserved regions of India.

Back2Basics:All Versions of UDAN Scheme

	Launch Date	Focus Category	Distance Length Cap	Viability Gap Funding Cap	Exclusivity	Period
UDAN 1.0	April 27, 2017	Category 1 (19-78 Seats)	500 km	70% for Cat-1, 90% for Hilly States, J&K, Ladakh, NE and Island regions	3 years	10 years
UDAN 2.0	November 16, 2018	Category 1 (19-78 Seats)	500 km	Same as UDAN 1.0	3 years	10 years
UDAN 3.0	November 8, 2019	Category 1 (19-78 Seats)	800 km	Same as UDAN 1.0	3 years	10 years
UDAN 4.0	December 3, 2020	Category 1 (19-78 Seats)	1,200 km	Same as UDAN 1.0	1 year	10 years
UDAN 5.0	September 1, 2021	Category 2 (20-80 Seats) and 3 (>80 Seats)	No restriction	60% for Priority Areas, 20% for Non-Priority Areas	1 year	10 years