Prime Minister Narendra Modi unveiled the UDAN (Udey Desh Ke Aam Nagrik ) scheme from Shimla on 27th April. UDAN is a part of the regional connectivity scheme that seeks to connect the Tier 2 and Tier 3 cities via airlines. It is essentially an initiative that seeks to increase the population boarding the airlines through cheap fares. The airlines will be mandated to offer at least half of the seats at subsidized prices which is capped at Rs.2500 for one hour flight/500 kilometer of the journey. The scheme will be applicable for up to a distance of maximum 800 kilometers.The airlines suffering loss will be compensated through the viability gap funding which will be funded by levies imposed on domestic airlines.
This scheme seeks to tap and exploit the untapped potential of the civil aviation market in the Tier 2 and Tier 3 cities.It will empower the common man and also bring along economic growth in the region. Viable airports will create job opportunities for the locals. It will help reduce the travel time for the commuters entailed with an increased comfort.In the current era where time is very much proportional to the productivity in economy,it will implicitly aid in spurring the economy. It will also help boosting the tourism in cities like Ranchi,Raipur,Gaya and other Tier 3 cities that have high cultural significance attached with them . Surge in tourism in states like Bihar,Jharkhand and other states will inject more revenue in the coffers of state government’s treasury helping them to spend more on sectors like education,health and infrastructure.Also,the construction/rejuvenation of airports and surge in tourism will inevitably create greater employment opportunities in the regions.Essentially,it would be a win-win situation. It will exhort the railways to reform itself in order to give more consumer satisfaction so as to retain it’s consumer base who will be enchanting to the airways because of better comfort. Most importantly,it will also be one step forward in trumping the class system present in our country.The class system that essentially views an air traveler with greater dignity and respect vis-a-vis a rail traveler will come to an inevitable end