Cabinet Approves UDAN 2.0: 100 New Airports to be Built Across the Country
The Central Government has taken a major decision to strengthen regional air connectivity within the country. An amount of ₹28,840 crore has been sanctioned for the ‘UDAN 2.0’ (Ude Desh ka Aam Nagrik – Let the Common Citizen Fly) scheme. Under this scheme, new airport infrastructure will be developed; additionally, financial assistance will be provided to airlines, along with support for the operation of smaller aerodromes.
Cabinet Approval for UDAN 2.0
Following the Cabinet’s approval, Information and Broadcasting Minister Ashwini Vaishnaw announced that 100 new airports would be developed under this scheme. These airports will be established by upgrading existing unused airstrips. Each airport is estimated to cost approximately ₹100 crore. Over the next eight years, a total of ₹12,159 crore will be spent on the development of these airports.
Furthermore, the scheme sets a target of developing 200 modern helipads, for which ₹3,661 crore will be spent over the next eight years. Meanwhile, airline companies will receive assistance totaling ₹10,043 crore in the form of Viability Gap Funding (VGF) over a period of 10 years to ensure the commercial viability of these projects.
Scheme Launched in 2016
It is noteworthy that the ‘UDAN’ scheme was launched in October 2016 with the objective of connecting the country’s smaller cities to the air network and making air travel accessible and affordable for the common citizen. The government states that the primary objective of the ‘UDAN 2.0’ scheme is to strengthen regional air connectivity, enhance accessibility to remote and inaccessible areas, and foster balanced economic development by integrating smaller cities into the air network.
A provision of ₹3,661 crore has been made for the construction of helipads. Additionally, under the ‘UDAN 2.0’ scheme, an additional budgetary allocation of ₹400 crore has been made to bolster the domestic manufacturing capacity within the aviation sector.
