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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

UDAN Scheme Revamp: Subsidy Extended to 5 Years 

Why in News

The Union Cabinet approved a revamped UDAN scheme with ₹28,840 crore outlay, extending airline subsidies and shifting funding to government budget support.

About UDAN Scheme

  • Full form: Ude Desh ka Aam Naagrik
  • Launched: 2017
  • Ministry: Civil Aviation
  • Objective:
    • Improve regional connectivity
    • Make air travel affordable
    • Develop Tier 2 and Tier 3 airports

Key Changes in Revamped UDAN

1. Subsidy Extended

  • Earlier subsidy period: 3 years
  • New subsidy period: 5 years
  • Purpose:
    • Improve route viability
    • Prevent route discontinuation

2. Funding Shift

  • Earlier: Subsidy funded through levy on airfares
  • Now: Subsidy funded directly from government exchequer

Why Revamp Was Needed

  • Many routes became non viable after subsidy ended
  • CAG findings: Only 7% to 10% routes viable after subsidy
  • Status of routes:
    • Total routes launched: 663
    • Routes discontinued: 327
  • Airports revived: Total: 95
    • Discontinued: 15 airports
[2024] Consider the following airports: 
1 Donyi Polo Airport 
2 Kushinagar International Airport 
3 Vijayawada International Airport 
In the recent past, which of the above have been constructed as Greenfield projects? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

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