By Aritra Banerjee
The Government of India has outlined its commitment to making regional air travel more affordable under the UDAN (Ude Desh ka Aam Nagrik) scheme, with a series of concessions aimed at reducing the cost of airline operations on regional routes, according to a statement by the Minister of State for Civil Aviation, General (Dr) V. K. Singh (r).
Under the scheme, the Central and State Governments and airport operators will offer various incentives to Selected Airline Operators (SAOs) to promote regional connectivity.
Airport operators will be exempted from levying Landing and Parking Charges, Terminal Navigation Landing Charges (TNLC), and will apply Route Navigation and Facilitation Charges (RNFC) on a discounted basis at 42.5% of standard rates. Additionally, SAOs will be granted the right to self-handle ground operations.
The Central Government will also contribute to the scheme by imposing a reduced Excise Duty rate of 2% on Aviation Turbine Fuel (ATF) purchased by SAOs from UDAN-designated airports for the first three years. It will allow SAOs to enter code-sharing arrangements with domestic and international airlines.
State Governments are expected to lower VAT to 1% or less on ATF at UDAN airports within their jurisdiction for a decade. They are also obliged to provide land free of cost for the development of these airports, along with supplying security and fire services. Other support includes providing utilities at heavily discounted rates and contributing to the Viability Gap Funding (VGF) determined.
However, the scheme has its challenges. Obstacles include delays in land allocation by State Governments and in regulatory compliance by new companies, a lack of suitable aircraft, and leasing issues. These include lengthy lead times for delivery of smaller aircraft and procurement challenges for spare parts from abroad.
The government is actively addressing these gaps, including periodic reviews of all stakeholders on airport development progress and permitting NSOP (Non-Scheduled Operator Permit) operations in fixed-wing seaplanes and helicopters.
This announcement underlines the Indian Government’s determination to boost regional air connectivity, despite its logistical and infrastructural challenges.