New airports inaugurated under UDAN scheme

Recently, the PM Narendra Modi virtually inaugurated three airports across the country under the UDAN scheme (Ude Desh Ka Aam Nagrik).

The three airports were- Chhattisgarh’s Surguja, Madhya Pradesh’s Rewa, and Uttar Pradesh’s Saharanpur.

GS-02 (Government policies and interventions)

UDAN is a central scheme that aims to make air travel more affordable for the general public in India’s tier II and III cities.
It was launched in the year 2017 and is planned to run for 10 years.
The nodal ministry of the scheme is Ministry of Civil Aviation.
It is a part of the National Civil Aviation Policy (NCAP) and is funded jointly by the Government of India and the state governments.
- National Civil Aviation Policy: NCAP was released in 2016. Its primary goal is to make flying affordable and ensure safe and affordable travel experiences for air passengers.

The scheme is inclined with the aspects of National infrastructure development. It intends to bring connectivity in the remote and regional areas of the country.
It primarily aims to bring affordability in air travel in the country and accordingly 50% of seats in UDAN flights are given at subsidized rates.
Viability Gap Funding (VGF): It is a mechanism where participating airlines receive financial support shared between the central and state governments.
- It is designed to assist infrastructure projects that are economically sound but lack full financial viability.
- Under the VGF scheme, the funding is divided between the Ministry of Civil Aviation and the respective State Government, typically in an 80:20 ratio.
- However, for the North-Eastern states and Union Territories, the funding ratio shifts to 90:10, with the central government covering the larger share.

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