Bid proposals for aviation scheme up 4-fold but Modi govt faces fund crunch

Government mulls increasing levy to bridge funding gap

The Modi government’s flagship aviation scheme, UDAN, is facing a fund crisis because the number of participating airlines has increased manifold. 

While the government’s initial assessment for the scheme was Rs 3 billion, a manifold rise in the number of participating airlines has increased the requirement to Rs 12 billion.

The government has received bid proposals for 502 routes in the second round, compared to 128 in the first round.

The bidding process for the second round was completed on December 21, but the Ministry of Civil Aviation has not awarded the routes because it is running short of