NDA Govt unveils Regional Connectivity Scheme called UDANU (Ude Desh Ka Aam Naagrik), fares capped at Rs 2,500 for 1-hour flights

The NDA Government kick-started the regional air connectivity scheme on Friday Oct 21,2016 by inviting submission of initial proposals from operators to fly to airports which do not have regular flights now. 

Operators have a six week window (till December 2) to submit their initial proposals. The Government will take two to three days to scrutinise the proposals and the entire process is likely to take 10 weeks to complete. 

"We hope to have the first flight (under RCS) by January. I am cautiously optimistic about it,” Ashok Gajapathi Raju, Minister of Civil Aviation said at the launch of the scheme. 

Under the RCS scheme, called the Ude Desh ka Aam Nagrik (UDAN) (Let the common man of the country fly), two weeks after the initial scrutiny by the Government it will invite counter proposals from various operators keen to operate on RCS routes and announce the winner within 14 days. 

 The scheme, which provides Viability Gap Funding for operators who cap fares on these flights at Rs. 2,500, allows only one operator to fly on a RCS route for three years. 

"The idea of the scheme is to get those who wear hawai chappals on to hawai jahaj (aeroplanes),” said Jayant Sinha, Minister of State for Civil Aviation.

 Civil Aviation Minister Ashok Gajapathy Raju (right) and Minister of State Jayant Sinha at an event to launch the regional connectivity scheme in the Capital on Friday Oct 21,2016

Air passengers on major routes will soon have to shell out more for flightsto fund the regional connectivity scheme under which fares will be capped at Rs 2,500 for one-hour flights.

The government expects the first flight under this scheme to take off in January.

A "first of its kind" in the world,UDANU (Ude Desh Ka Aam Naagrik) will be based on market mechanism as well as bidding for a minimum of 9 seats and a maximum of 40 seats in a fixed wing aircraft.

For 50 per cent of the seats of flights under UDAN, the fare cap will be Rs 2,500, and the rest will be market-based pricing.

"We are cautiously optimistic about it (UDAN)," Civil Aviation Minister Ashok Gajapathi Raju said on Friday Oct 21,2016, adding that the first flight under the scheme is expected to take off in January 2017.