UDAN Scheme: In need of Government Action to Fly

In the last session of Parliament, the government acknowledged that only one-fourth of the air routes granted under the Regional Connectivity Scheme (RCS) or UDAN (Ude Desh ka Aam Nagrik) have become operational. Flights have commenced so far on merely 186 out of 705 RCS routes it had offered to airline operators so far.

Policy Suggestions to Boost the Scheme

• The policy calls for multi-sectoral interventions in order to realize its full potential.
• Reducing ATF Charges: High Aviation Turbine Fuel (ATF) cost which is 40% of the total operational cost eats into the already thin profits. Reducing VAT on ATF ....