Fifth Round of UDAN

April 22, 2023

The Union Civil Aviation Ministry launched the fifth round of the Regional Connectivity Scheme (RCS), known as Ude Desh Ka Aam Nagrik (UDAN). It is expected to further boost the connectivity to remote and regional areas across India.

UDAN 5.0 Key Features

UDAN 5.0 focuses on Category-2 (20-80 seats) and Category-3 (>80 seats) flights, with no restrictions on the distance between the origin and destination.
Viability gap funding (VGF) for both Priority and Non-Priority areas has been increased to 600 km stage length.
Only Network and Individual Route Proposals proposed by airlines will be considered.
After receiving the Letter of Award (LoA), airlines must submit an action/business plan within two months, including their aircraft acquisition plan, availability of aircraft, crew, slots, etc.
Airlines cannot be awarded the same route more than once, whether in different networks or the same network.
If the average quarterly PLF surpasses 75 percent for four continuous quarters, the exclusivity will be withdrawn to eliminate the instances of exploitation in a route for monopolization.
Airlines must commence operations within four months of being awarded the route.
The scheme includes a list of airports that are ready or will soon be ready for operations, making it easier to operationalize routes under the scheme.
The process of transferring routes from one operator to another will be simplified and incentivized.

UDAN 5.0: Vision and Benefits

UDAN has been beneficial for a diverse set of stakeholders, including passengers, airlines, and underserved regions. Passengers have gained access to air connectivity, airlines have received concessions for operating regional routes, and unserved regions have received direct and indirect benefits for their economic development. UDAN 5.0 aligns with the Prime Minister’s vision of making air travel affordable and accessible to the common man.

Since its launch, UDAN has proven to be a lifeblood of many regions which are now well connected with places across the country. This new and stronger version of the scheme will raise the momentum, connecting new routes, and bring us closer to the target of operationalizing 1000 routes & 50 additional airports, heliports, and water aerodromes in the near future.

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