PM inaugurated Saharanpur, Rewa and Ambikapur airports in Uttar Pradesh, Madhya Pradesh, and Chhattisgarh respectively, as part of the celebrations under RCS-UDAN.
Key Features of the Scheme
- Nodal Ministry: Ministry of Civil Aviation
- Genesis: Launched in 2016, a vital component of National Civil Aviation Policy (NCAP) 2016.
- The first RCS-UDAN flight was inaugurated in 2017, connecting Shimla to Delhi.
- Type: Central Sector Scheme
- Purpose: To improve infrastructure and connectivity in India, especially in remote and underserved regions, making air travel affordable for the masses.
- Benefits
- Subsidised seats for passengers: Travel fee is capped (initially it was capped to Rs.2500- per passenger)
- Support to Airlines: Government compensates in the form of Viability Gap Funding (VGF) to airlines for losses due to low fares.
- Regional Connectivity Fund (RCF): It facilitates the self-financing mechanism of the scheme by funding the VGF through a levy on certain domestic flights.
- Market-driven model: Airlines assess demand on specific routes and submit proposals during bidding rounds.
- Recent changes: Currently 5th phase of the scheme is ongoing. The distance gap of 600 km and Airfare Caps is reduced VGF is enhanced
- Implementing Agency: Airports Authority of India (AAI)
Key achievements of the scheme
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