Question : Routes under UDAN 4

(a) the details of the new routes proposed to be connected under Regional Connectivity Scheme-UDAN version 4.0;

(b) the details of the current underserved, unserved and aerodromes where operations have commenced under the scheme since 2016, including details of the Selected Airline Operators (SAO);

(c) the details of cancelled routes and routes that failed to attract bids;

(d) whether any selected airline operator has availed of viability gap funding under the scheme if so, the details thereof; and

(e) whether a corpus to subsidise UDAN air fares has been set up if so, the details thereof including airline-wise subsidies given?

The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)

(a) to (c): The Government has commenced fourth round of bidding under Regional Connectivity Scheme (RCS)- UDAN (Ude Desh ka Aam Nagrik). RCS-UDAN is a market driven scheme. 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.

Under three rounds of bidding of RCS-UDAN, 250 RCS routes have commenced as on 31-01-2020 connecting 44 RCS (25 unserved and 19 underserved) airports. List of such airports is attached as Annexure-A.

Routes are formed based on assessment of demand and subsquent bid by the airlines in a transparent bidding process on e-platform. Details of cancelled routes under UDAN is attached as Annexure-B.
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(d) to (e): 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. Financial support (Viability Gap Funding or VGF) to meet the gap, if any, between the cost of airline operations and expected revenues is paid to the SAOs as per their bid documents for operation of RCS flights under the scheme. Central Government and State Governments share VGF in the ratio of 80:20, except for Union Territories (UTs) and the States in North-Eastern Region, where the ratio is 90:10. A regional Connectivity Fund (RCF) has been 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.The VGF is paid out of this Fund.;
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Details of VGF disbursed to Selected airlines operators under RCS Scheme is attached as Annexure-C.