The five years of India’s regional air connectivity scheme, UDAN, will also call for celebrations as well as a look at the lessons learned since its launch. UDAN, short for Ude Desh Ka Aam Nagrik (‘Ude Desh Ka Aam Nagrik’), provides affordable air services to citizens in all parts of India. As of mid-July 2022, UDAN operated 425 routes connecting 68 destinations. More than 10 million people have taken advantage of cheap air travel to these destinations, which were previously unserved or unserved. This number is expected to double by 2024-25. The success of UDAN has effected a change in the psyche of the country along with air travel. It has democratized this mode of transport.
Air travel, which until a few years ago was considered the patronage of the elite, is now seen as an efficient option for all walks of life. If we look at the profiles of passengers at airports across the country, it really represents the aspirational population of ‘New India’. Importantly, by adopting air travel, common people have started contributing to the growth of the aviation sector. Aviation now has the potential to outpace Indian Railways in passenger volume in second class AC and above classes. Though launched as a scheme for affordable regional connectivity, UDAN has also created an interesting growth model.
In 2016, the top six airports in India handled 65% of the country’s air traffic. This anomalous pattern of growth in the aviation sector focused on metro routes is finally in the process of reforming. Since the implementation of UDAN, the share of non-metro airports in the domestic passenger pie has increased. With increasing traffic, airlines are putting these emerging destinations on their route maps. Darbhanga in Bihar, Jharsuguda in Odisha, Shillong in Meghalaya, Kishangarh in Rajasthan, Jagdalpur in Chhattisgarh and Hubli in Karnataka are some of the shining examples of non-metro development models of aviation, with large rural catchment areas. This has helped in reducing the disparity between urban and rural areas. As Prime Minister Narendra Modi noted recently, UDAN fits well into the framework of “growth through inclusiveness”.
The UDAN scheme is a unique collaborative model involving all stakeholders. Although administered by the government, it has active partnerships with states, airlines and airports. Resource pooling has been achieved by the active contribution of these stakeholders through monetary or non-monetary incentives for airlines and airports, even as the Indian government has implemented the required infrastructure as part of its larger policy framework. Provided budgetary support for
States provide part of the viability gap fund and provide airport security and fire services free of charge. Previously, states were passive participants. But so far 30 states and union territories have signed MoU with the central government for participation in this scheme. It reflects the true spirit of ‘collaborative federalism’.
Now consider the role of the aviation industry. Airlines voluntarily contribute a fee for the implementation of UDAN and have started services on routes beyond the normal limits of commercial viability using government incentives offered under the scheme. Airports help airlines reduce their operating costs by waiving some of their fees to help make services affordable. Some players in the aviation ecosystem are also responding to the opportunity by thinking beyond the metro-centric model.
So, an abbreviation of UDAN is ‘Sector of, Sector by, Sector to’. It was the vision of the region to invest in regional connectivity to drive demand and accelerate a good cycle of growth.
The collaborative efforts are going smoothly, as there has been no litigation between the stakeholders on the scheme till date. It is not that differences have not arisen, but with transparent procedures and a trust sharing between the government and the aviation industry, these differences are addressed within the purview of the administrative framework. Perhaps very few government schemes can claim such a distinction.
UDAN has also built a model of resilience to meet sudden challenges. For example, during the 2020 COVID lockdown, Lifeline UDAN allowed airlines to participate in the transportation of medical cargo without wasting time and without the satisfaction of the health authorities of the Center and the states. The Ministry of Civil Aviation recently rolled out a Krishi Udan scheme under a similar framework, which enhances cargo logistics at high-capacity airports for perishable agricultural products. If all goes well, some North-Eastern airports will soon be connected to international destinations under international flight, giving a boost to the Act East policy of the government. The ability to fine-tune and adapt the framework to meet new challenges is clearly a major strength of this policy approach.
A few years ago, inclusive growth in aviation seemed predictable. UDAN has given a new perspective to our aviation sector and has been instrumental in stimulating regional development. The scheme has been designed to ensure that the benefits of air travel reach everyone. However, to address the rapidly rising aspiration levels of New India, UDAN will need to reinvent itself with a focus on deeper connectivity.
UDAN’s growing journey over the past 5 years has provided us with valuable lessons on inclusivity, collaboration, adaptability and resilience. These guiding principles will define how it will be from here until 2026, which is the final year of the plan.
These are the personal views of the author.
Usha Padhi, Joint Secretary, Civil Aviation, Government of India.
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