This is the second attempt at International UDAN. A few years ago, overseas routes were awarded under the scheme, but were surrendered by the selected airlines because of the COVID-19 pandemic and financial constraints (File Image: Unsplash)
New routes connecting India’s northeast with international destinations are expected to be awarded this month under the Centre’s flagship regional air connectivity scheme UDAN. The bidding process has been completed for routes ranging from Guwahati to Bangkok, Guwahati to Dhaka and Agartala to Chittagong.
Usha Padhee, Additional Secretary at the Ministry of Civil Aviation, told Moneycontrol that these routes at be awarded at the earliest. “We have carried out the bidding process. Now, finally approvals are being sought. We should be able to award these routes within September,” Padhee said.
The Centre recently awarded the Imphal to Mandalay (Myanmar) route to SpiceJet.
International UDAN
UDAN is focused on promoting regional connectivity and affordability in the domestic sector. Based on the same template, ‘International UDAN’ has been designed to provide connectivity with overseas destinations. The initiative is not funded by the Centre, but by state government budgets.
“Those states which want to increase international air connectivity seek our expertise in arranging the bidding and other processes,” Padhee said. “We advise them about the amount of budgetary and other support they would be required to provide the initiative.”
According to Padhee, north-eastern and other states such as Odisha have also shown interest in taking part in the scheme.
Interestingly, this is the second attempt at International UDAN. A few years ago, overseas routes were awarded under the scheme, but were surrendered by the selected airlines because of the COVID-19 pandemic and financial constraints.
UDAN 5.0
Besides awarding the international routes, the Centre is set to launch the next stage of UDAN. The scheme’s newest version has been named UDAN 5.0 and is expected to offer routes connecting more than 50 regional and remote destinations.
These destinations have been selected on the basis of their potential for attracting tourists. Consequently, most of these destinations have major tourism attractions such as wildlife sanctuaries in close proximity.
“We will open bidding for the forthcoming round of UDAN with over 50 destinations,” Padhee said. “These routes will connect airstrips which have wildlife, historical, touristic or religious destinations in close proximity.”
The additional secretary said these routes will be allotted on the basis of a two-stage bidding process. “Bidders will be able to choose the routes for themselves while we will give the right to VGF (viability gap funding) and exclusivity for flying on the selected routes. The routes on offer will connect airstrips which currently do not have any traffic movement,” she said.
Under the plan, routes connecting places like Bihar’s Kishanganj, Muzaffarpur, Bhagalpur and Jogbani will be offered. Similarly, routes to and from Maharashtra’s Yavatmal, Karad and Phaltan are expected to be awarded. Airstrips such as Akbarpur and Sultanpur in Uttar Pradesh, and Rajasthan’s Sawai Madhopur and Bharatpur are also among others that will be on offer.
Impact
The 10-year-old scheme was launched in October 2016, as part of the National Civil Aviation Policy unveiled that year. Its first flight took place in April 2017, connecting Delhi with Shimla. To enhance regional air connectivity, the scheme provides VGF to airlines that have been selected via a bidding process to operate flights on under-served or unserved routes.
Until now, 433 new routes have been initiated under the scheme that have connected 70 such destinations. These destinations include 58 airports, eight heliports, and two water aerodromes which use seaplanes.
These scheme have increased the total number of operational airports in India from 74 in 2014 to over 140. More than 10 million passengers had availed of the scheme until August 4, 2022.
“The maximum impact of the scheme has come in the mind-set of people that air travel is not elitist but an essential requirement for growth and development of the country,” said Padhee. She has been associated with the scheme since its conception.
Air cargo
Additionally, Padhee said a new initiative for promotion of air cargo services is in the works. “We have identified 58 airports as part of the air cargo promotion, where some form of support will be provided to domestic freighter services. This support may be in the form of waving parking and landing charges at these airports,” she said.
“Cargo was the only segment which grew during the COVID-19 period. It helped airlines survive and also aided in transportation of massive quantities of lifesaving pharmaceuticals and other essential items,” Padhee noted.
