Saturday, July 08, 2023

NITI Aayog to examine viabiliy of UDAN scheme without VGF support

NITI Aayog is evaluating the viabiliy of UDAN (regional connectivity scheme) routes in the absence of viability gap funding by the government and floated a request for proposal (RFP) to engage a consultancy firm for the same.

The study will evaluate the relevance of the scheme as well as assess whether it has improved regional connectivity and made air travel economical.

“The focus of the desk research is to understand how VGF, including the NER (Northeast Region) can be improved and assess its effectiveness through a fiscal and economic lens,” the RFP document said.

The study will deploy the usage of qualitative consultations with stakeholders and passenger surveys.

“On an average, 50 passengers in each selected RCS airport/heliport/ water aerodrome would be surveyed about their perceptions of RCS-UDAN scheme,” the RFP said.

The UDAN scheme was launched in 2016 to connect over 100 unserved and underserved airports, heliports and water aerodromes across India with over 1,000 RCS routes by 2024.

07/07/2023 Mukesh Jagota/Rohit Vaid/Financial Express

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