Working to extend Udan scheme by another 10 years: Rammohan Naidu

The central government is working to extend the regional connectivity scheme Udan for another ten years so that private sector players gain the confidence to operate more regional flights across India, aviation minister Rammohan Naidu stated on Thursday.

The ministry launched the Udan (Ude Desh ka Aam Nagrik) scheme on October 21, 2016, to stimulate regional air connectivity and make air travel affordable for the masses.

Under the Udan scheme, financial incentives—through viability gap funding—are extended from the Centre, state governments, and airport operators to selected airlines to encourage operations from unserved and underserved airports.

"In the RCS (regional connectivity scheme) Udan scheme, we are creating opportunities that encourage private players. The major challenge private players face is viability on regional routes. The route is very attractive on paper, but we have seen that viability gap funding becomes a necessary point to address. For regular routes, state governments are trying to provide (viability gap funding)," Naidu said in his speech while launching the guidelines for seaplane operations under the Udan scheme.

"The RCS is there to provide that only. We are going to continue that. The RCS Udan scheme that is there presently was envisioned for 10 years. Because of the success we have gained from the scheme, we, from the ministry, want to propose RCS 2.0, which would run for another 10 years. The ministry is strongly working on that. I am mentioning this scheme because I want the confidence to be there with the private players," he added.

The government intends to offer viability gap funding for seaplane operations, Naidu said. He also mentioned that the government will promote the design and manufacturing of aircraft, helicopters, and seaplanes within India. On Thursday, the civil aviation ministry unveiled simplified regulations for seaplane operations.