UDAN 3.0: Government boosts ₹28,840cr regional air travel scheme
The government just gave a big ₹28,840 crore boost to the UDAN scheme, aiming to make regional air travel easier and more reliable over the next decade.
This comes after only one-half of the 649 routes launched so far have stayed active.
Now, airlines will get subsidy support for 5 years instead of 3, hopefully making flights to smaller cities less likely to disappear.
What's new in UDAN 3.0
Under the new plan, airlines will receive full (100%) subsidy support for the first 2 years, with subsidies tapering over the following 3 years (a total 5-year subsidy period).
The idea is to help them stick around on less-busy routes instead of dropping out early.
Airports in remote areas are also getting extra funds, ₹2,577 crore, to keep things running smoothly even if passenger numbers are low.
Plus, airlines will have 3 years without competition on these new routes and must start flying within 4 months of getting approval.
As Union Minister Ashwini Vaishnaw put it, government support is key for airports with fewer travelers so everyone can stay connected.