Q.12. What is the need for expanding the regional air connectivity in India? In this context, discuss the government’s UDAN Scheme and its achievements. [UPSC 2024 GS P-3]

Expanding regional air connectivity in India is essential for improving economic growth, social integration, and overall connectivity between underserved and remote areas. With a vast geography, many regions in India remain poorly connected by road or rail, making air travel a critical solution for improving accessibility and promoting development in these areas. The government’s UDAN (Ude Desh Ka Aam Nagrik) scheme aims to address this gap by making air travel affordable and accessible to common citizens while boosting the aviation sector.

Need for Expanding Regional Air Connectivity:

1. Balanced Regional Development:
   • Many remote and underserved regions in India, especially in northeastern states, hilly regions, and Tier-2 and Tier-3 cities, lack adequate transport infrastructure. Expanding air connectivity can stimulate economic development in these areas by facilitating business travel, tourism, and trade.
   • Improved connectivity helps bridge the urban-rural divide by integrating smaller towns into the national economy and reducing regional imbalances.
2. Boosting Economic Growth:
   • Air connectivity can accelerate economic growth by providing faster transportation for goods, services, and people. It supports industries such as tourism, hospitality, agriculture, and small-scale manufacturing, which are often critical in smaller towns and cities.
   • The creation of jobs in the aviation sector, airport infrastructure, and associated services (hotels, transport, catering, etc.) further boosts the local economy.
3. Enhancing Access to Essential Services:
   • Improved air connectivity enhances access to critical services such as healthcare, education, and emergency services, particularly for people living in remote or inaccessible areas. For example, faster medical evacuation or access to specialized treatments in larger cities can save lives in emergency situations.
   • It also facilitates better administrative control by ensuring that government officials, emergency responders, and security personnel can reach distant areas more quickly.
4. Reducing Travel Time and Costs:
   • By expanding air travel to smaller cities, regional air connectivity reduces travel time significantly compared to road or rail travel. This not only benefits passengers but also improves the efficiency of businesses operating across various regions.
   • Affordable flights encourage more people to opt for air travel over other slower modes of transport, fostering greater mobility within the country.
5. Strengthening National Security and Border Area Connectivity:
   • Enhanced air connectivity in remote and border areas (such as the Northeast or the Himalayan region) strengthens national security by improving military logistics and the movement of personnel. It also helps in better governance and integration of border regions into the national mainstream.
6. Promoting Tourism:
   • Many tourist destinations in India remain underutilized due to poor connectivity. Expanding regional air travel can boost domestic tourism by making these destinations more accessible to a larger population. This, in turn, generates employment and revenue in the tourism and hospitality sectors.

UDAN Scheme: Overview and Achievements

The UDAN Scheme (Ude Desh Ka Aam Nagrik) was launched in 2016 as part of the government’s National Civil Aviation Policy to promote affordable air travel and enhance regional connectivity by developing underserved and unserved airports. The scheme operates on a Public-Private Partnership (PPP) model where the government provides financial incentives to airlines and airports to make regional flights viable.

Key Objectives of the UDAN Scheme:

1. Making Air Travel Affordable:
   • The scheme aims to make air travel affordable for the common man by capping airfare on selected routes at ₹2,500 for an hour of flight.
2. Developing Underserved and Unserved Airports:
   • UDAN seeks to operationalize unserved (no scheduled commercial flights) and underserved (with limited operations) airports across the country. The goal is to develop or upgrade infrastructure at these airports, ensuring better connectivity.
3. Promoting Regional Air Connectivity:
   • The scheme encourages airlines to operate regional routes by offering financial incentives such as Viability Gap Funding (VGF) to compensate for low demand. This helps airlines operate flights on less profitable routes.
4. Encouraging Participation from Small Airlines:
   • UDAN promotes the entry of small and regional airlines, helping them become viable by reducing the cost burden and allowing them to cater to smaller towns and cities.

Achievements of the UDAN Scheme:

1. Increased Connectivity:
   • Over the years, UDAN has led to the operationalization of 100+ regional airports, many of which were previously non-functional or had minimal activity. As of 2023, the scheme has made air travel accessible to 350+ routes connecting more than 65 underserved and unserved regions across the country.
   • Cities like Jharsuguda (Odisha), Pakyong (Sikkim), Kannur (Kerala), and Hubli (Karnataka) have benefitted from improved air connectivity.
2. Affordable Air Travel:
   • By capping ticket prices, UDAN has allowed more middle-class and lower-middle-class passengers to experience air travel, increasing the demand for regional air services.
   • Airfares under the scheme remain capped for a certain number of seats per flight, while the remaining seats can be sold at market prices. This model ensures that flights remain profitable while offering affordable seats to the public.
3. Development of Remote and Border Areas:
   • The scheme has been particularly beneficial in promoting connectivity in remote and border regions like the Northeast, Ladakh, and Andaman & Nicobar Islands. This has improved local development, tourism, and security.
4. Boosting Regional Tourism:
   • UDAN has contributed significantly to the growth of domestic tourism by connecting major tourist destinations that were previously difficult to access, such as Pithoragarh, Kishangarh, and Hampi. This has resulted in more tourists visiting lesser-known yet culturally significant places.
5. Economic Impact:
   • The scheme has generated employment in various sectors, including construction (airport infrastructure), aviation (pilots, crew, and ground staff), and allied sectors like hospitality and transport.
   • Improved connectivity has also led to better investment opportunities in regional economies, particularly in Tier-2 and Tier-3 cities.
6. Promoting Private Sector Participation:
   • The scheme has attracted private sector participation, with several new airlines entering the market to cater to regional routes. Airlines such as SpiceJet, IndiGo, and TruJet have been key players in operating under the UDAN initiative.

Challenges and Areas for Improvement:

1. Viability and Profitability Issues:
   • Despite the government’s Viability Gap Funding, many routes remain financially unviable for airlines due to low demand, high operational costs, and lack of supporting infrastructure. Some airlines have ceased operations on certain routes after the initial phase due to profitability concerns.
2. Infrastructure Gaps:
   • Several regional airports face issues related to infrastructure, such as inadequate runway facilities, limited cargo handling capacity, and lack of modern amenities. These limitations affect the smooth operation of flights and discourage further investments in certain regions.
3. Limited Number of Flights:
   • While the scheme has expanded regional connectivity, the number of flights per day on several routes remains low. Infrequent flight schedules can reduce the attractiveness of air travel for passengers who require more flexible travel options.
4. Coordination with State Governments:
   • The success of the UDAN scheme requires better coordination between the central government, state governments, and private sector stakeholders. Delays in building airport infrastructure, lack of state support for local aviation infrastructure, and issues related to land acquisition have slowed down the pace of regional connectivity.

Conclusion:

The UDAN Scheme has made significant strides in improving regional air connectivity, enhancing economic development, and making air travel more affordable for the general population. However, there remain challenges in terms of financial viability, infrastructure, and operational sustainability. Addressing these challenges, particularly through more robust infrastructure development, better demand forecasting, and policy support, will be crucial for the long-term success of the scheme and for achieving the goal of inclusive air connectivity across India.