Following the three successful rounds of bidding, the Ministry of Civil Aviation has launched the fourth round of Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik( UDAN) to further enhance the connectivity to remote and regional areas of the country. Focus of this round would be the priority areas like NER, Hilly States, J&K, Ladakh and Islands. Some of the key features of the Scheme are:
Revision of (Viability Gap Funding) VGF cap – The provision of VGF for Category 2 / 3 aircraft (more than 20 seater) has been enhanced for operation of RCS flights in Priority Area(s) (Union Territories [UT] of Ladakh and Jammu & Kashmir; the States of Himachal Pradesh, Uttrakhand, North Eastern State; UT of Lakshadweep and Andaman & Nicobar). The VGF cap applicable for various stage lengths for operation through category 1 / 1 A aircraft (below 20 seater) has also been revised to further incentivize the operation of small aircraft under the Scheme.
Promoting short-haul routes – The provision of VGF would be restricted for routes with stage length up to 600 kms, for operation of Category 2 / 3 aircraft, beyond it no monetary support would be provided. The table for provision of VGF for various stage lengths would be available for stage length up to 500 kms.
Well defined Prioritization framework – Airports that has already been developed by AAI would be given higher priority for award of VGF under the Scheme, followed by airports not part of the above list but located Priority Area(s) would be given a priority, followed by airports located in areas other than Priority Area(s).
Flexibility to change the frequency of flight operation – The Selected Airline Operator (SAO) would be allowed to change the frequency of flight operation, during the tenure of flight operation of the given route, provided that the total scheduled flight operation submitted as part of the Technical Proposal, is conformed and adhered to within a period of one year.
Inclusion of helicopter and sea plane operation under NSOP license – The operation of helicopter and sea plane would be allowed under this round.
