Regional Connectivity Scheme – ‘Ude Desh ka Aam Naagrik’ (RCS-UDAN)

To make flying accessible and affordable for the masses in the regionally important cities, the RCS-UDAN scheme was launched in October 2016. This is a first-of-its-kind scheme globally to stimulate regional connectivity through a market-based mechanism.

• The scheme UDAN envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. The scheme would be in operation for a period of 10 years.
• UDAN has a unique market-based model to develop regional connectivity. Interested airline and helicopter operators can start operations on hitherto un-connected routes by submitting proposals to the Implementing Agency.
• The operators could seek a Viability Gap Funding (VGF) apart from getting various concessions.
• All such route proposals would then be offered for competitive bidding through a reverse bidding mechanism and the route would be awarded to the participant quoting the lowest VGF per Seat.