The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)
(a): The salient features of the scheme are as under:
i. The Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) intends to enable air operations on unserved routes connecting regional areas, promote balanced regional growth and make flying affordable for masses. ;
ii. Financial incentives in terms of concessions from Central, State Governments and airport operators are extended to Selected Airline Operators to encourage operations from unserved/underserved airports/heliports/water aerodromes and to keep the air fare affordable.;
iii. Support to the Selected Airline Operators in the form of Viability Gap Funding (VGF). State Governments concerned provide 20% share towards VGF for RCS flights pertaining to their states. However, the share of VGF for North-Eastern states and the Union Territories is 10%.;
iv. Excise Duty at the rate of 2% is levied on Aviation Turbine Fuel (ATF) drawn by Selected Airline Operators at RCS Airports for RCS Flights for a period of three (3) years from the date of commencement of RCS flight.;
v. The airlines are required to commit around 50% of the seats as RCS seats (limited to 40 seats) on RCS flights.;
vi. Regional Connectivity Fund (RCF) is created by levying Rs.5000/- on each departure of flights on aircraft having MTOW (Maximum Take-Off Weight) above 40 Tonnes except for the departure of flights on routes in North East Region, Himachal Pradesh, Uttarakhand, Union Territories of Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands and Lakshadweep Islands.;
vii. For balanced regional growth, route allocations are spread equitably across five regions in the country viz. North, South, East, West and North East (with a cap of 30% in a given region).;
viii. RCS-UDAN is a market driven mechanism. Development of regional air connectivity routes is left to market forces.The interested airlines based on their assessment of demand on particular routes submit proposals at the time of bidding under RCS - UDAN from time to time.;
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(b) to (e): States/UTs sign tripartite agreements with Ministry of Civil Aviation and Airports Authority of India for implementation of the Regional Connectivity scheme only. However, any airport which is included in the awarded routes of UDAN, is developed under "Revival of unserved and underserved airports" Scheme.
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