Modified UDAN Scheme: Reviving Regional Aviation
The Union Cabinet has approved the ‘Modified UDAN’ scheme with a significant increase in funding to revive the regional aviation sector.
Background and Challenges
- The original UDAN scheme aimed to expand aviation into interior areas through scheduled commuter airlines.
- Challenges included:
- Lack of supporting infrastructure
- Low or unpredictable passenger demand
- Insufficient coverage of operating costs
- Lack of awareness
Key Features of Modified UDAN
- Subsidy Period Extension:
- Increased from three to five years for tier-II and tier-III routes.
- Financial Commitment:
- ₹10,043 crore set aside over the next decade for subsidies.
- ₹12,159 crore for redeveloping unused airstrips.
- ₹3,661 crore for building helipads and purchasing aircraft.
- Focus on last-mile connectivity and better matching transport mode to demand.
Structural Issues and Criticisms
- Regional aviation remains fragile due to:
- High cost per passenger
- Price sensitivity
- Competition from rail and road transport
- Operational inefficiencies
- The scheme does not adequately address weak demand on selected routes.
- Lack of integration with broader transport and economic networks.
- No mention of ground transport links or integrated scheduling in the provided details.
Conclusion
The success of the Modified UDAN scheme depends on improving route selection and integration with broader transport networks to create a self-sustaining market. The reliance on sustained government support rather than cultivating independent market demand is a point of concern.
