Additional VGF offered for Priority Sectors Under UDAN 4.0
NEW DELHI: With a focus on connectivity of Islands, UDAN 4.0 scheme under the Ministry of Civil Aviation (MoCA) has invited bids for 3 unserved airports/airstrips in Andaman & Nicobar Island and 1 underserved airport/airstrip in Lakshadweep Island. The ministry has also recognized 4 Water Aerodromes locations in Andaman & Nicobar Island and 2 in Lakshadweep Island that is up for bidding. The efforts are in the direction to provide aerial connectivity to the region. The move will not only boost tourism but will also transform the economic situation of the region. Under the UDAN 4.0 scheme, MoCA is also providing additional Viability Gap Funding (VGF) of around 25% to the airlines.
The route connecting “Cochin – Agatti” is currently operated
by Alliance Air. The Ministry of Home Affairs aiming to promote the route
Cochin-Agatti-Cochin further, intends more airlines to operate this route.
Accordingly, as an exception to the Scheme, the Cochin-Agatti route has been
incorporated under the current version of the Scheme to provide additional
connectivity to the island region.
Airports available for bidding under UDAN 4.0:
Other incentives to the airlines:
Concessions offered by the Airport / Water Aerodrome / Helipad operators are as follows:
MoCA aims to operationalize 1000 routes and more than 100
airports in the next five years. This would be achieved by focusing on
operationalizing routes in Priority Areas. AAI would focus on developing the
no-frills airport in the future and routes connecting such airports would be
prioritized for the award of VGF. The market would be incentivized to develop
short-haul routes only, providing connectivity to nearby airports.
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