UDAN (Ude Desh ka Aam Naagrik) Scheme

About UDAN (Ude Desh ka Aam Naagrik)

• Launched: October 2016
• Nodal Ministry: Ministry of Civil Aviation
• Objective: To connect small and medium cities with big cities through air service.
• Funding: It is jointly funded by the central government and state governments.
• Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500 per hour of flight. This is achieved through;
  • Viability Gap Funding (VGF) – A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.

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