UDAN 5.1

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Context: The Union Ministry of Civil Aviation has launched UDAN 5.1, a new version of the Regional Connectivity Scheme (RCS) that aims to enhance air connectivity and accessibility to remote areas of the country through helicopters.

Details

• This is the first time that the scheme has been designed specifically for helicopter routes, with several features to make them more viable and affordable for operators and passengers.

UDAN 5.1

• The Scheme allows operators to operate routes where one of the origin or destination locations is in a priority area, such as hilly regions, islands, or North East states.
• It also reduces the airfare caps by up to 25% for helicopter routes, making them more attractive for passengers who want to travel to remote destinations.
• It increases the viability gap funding (VGF) caps for both single and twin-engine helicopters, which are subsidies provided by the government to cover the operational losses of the routes.
• The launch of UDAN 5.1 is expected to give a boost to the helicopter segment of the Indian civil aviation industry, which has been facing challenges due to high costs, regulatory hurdles, and infrastructure constraints.

Conclusion

• UDAN 5.1 is expected to benefit the local economies of remote regions by promoting tourism, hospitality, and trade. So far, 46 helicopter routes have been operationalized under previous rounds of UDAN, and this round aims to cover a much larger number of routes. The scheme will also help in enhancing the penetration of helicopters in aiding tourism and development in remote areas.

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UDAN 5.0: https://www.iasgyan.in/daily-current-affairs/udan-50

UDAN Scheme: https://www.iasgyan.in/daily-current-affairs/udan-scheme-47

https://pib.gov.in/PressReleasePage.aspx?PRID=1926992