Modified UDAN scheme's increased subsidies unlikely to create demand for regional air travel
The Union Cabinet has approved a 'Modified UDAN' scheme with a sixfold higher outlay, aiming to revive regional aviation. The scheme extends the subsidy period for tier-II and tier-III routes from three to five years and shifts direct funding of subsidies to the exchequer. However, the article argues that UDAN (Ude Desh ka Aam Naagrik) has historically failed due to weak underlying demand, insufficient infrastructure, and competition from other transport modes. The Modified UDAN scheme, despite increased financial commitment, is unlikely to create sustainable demand without revisiting route identification, nurturing strategies, and integrating with broader transport networks.
Key Points
- The Union Cabinet has approved a 'Modified UDAN' scheme with a sixfold higher outlay to boost regional aviation.
- The modified scheme extends the subsidy period for tier-II and tier-III routes from three to five years and involves direct funding of subsidies by the government.
- Critics argue that UDAN has historically failed due to weak demand, inadequate infrastructure, and competition from rail and road transport.
- The article suggests that increased subsidies alone will not create sustainable demand without a fundamental re-evaluation of route selection and integration with broader transport and economic networks.
Exam Facts
- The scheme is called 'Modified UDAN' (Ude Desh ka Aam Naagrik).
- The government has set aside ₹10,043 crore over the next decade for subsidies and ₹12,159 crore for redeveloping airstrips and building helipads.
- The subsidy period for tier-II and tier-III routes has been increased from three to five years.
- The Civil Aviation Ministry is responsible for the scheme's details.
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