TAG: GS 3: ECONOMY
THE CONTEXT: The government has announced a significant extension of its regional air connectivity scheme, known as UDAN (Ude Desh ka Aam Nagrik), by another decade.
EXPLANATION:
- This move aims to further strengthen air travel infrastructure across the country.
- As part of this initiative, the government will offer viability gap funding specifically for seaplane operations, as revealed by Civil Aviation
- The new measures are expected to provide a major boost to the development and integration of seaplane services in India.
Simplified Regulations for Seaplane Operations
- In a strategic move to promote seaplane operations, the Civil Aviation Ministry has introduced simplified regulations, easing the operational challenges for these unique aircraft.
- Several states, including Andhra Pradesh and Maharashtra, have shown a keen interest in participating in the development of seaplane services.
- This interest aligns with the government’s vision to enhance regional connectivity and boost tourism through innovative modes of transport.
- To kickstart this initiative, demonstration flights of seaplanes are scheduled to commence in October, with Vijayawada being the first city to host these flights.
- The demonstration phase will allow the government to showcase the potential of seaplanes in improving connectivity, particularly in regions with abundant water bodies but limited air infrastructure.
Viability Gap Funding for Seaplane Operators
- One of the key aspects of the government’s plan is the provision of viability gap funding to support seaplane operators.
- The Viability Gap Funding (VGF) Scheme aims at supporting infrastructure projects that are economically justified but fall marginally short of financial viability.
- Support under this scheme is available only for infrastructure projects where private sector sponsors are selected through a process of competitive bidding.
- The total VGF under the scheme does not exceed 20% of the total project cost, however, the Government may decide to provide additional grants up to a limit of a further 20%.
- This financial assistance is crucial for making seaplane operations economically viable, ensuring that operators can sustain services in the long term.
- While tourism is a primary focus, Civil Aviation Minister highlighted that seaplanes have versatile applications.
- They can be used for research purposes, environmental monitoring, coastal resource management, and even coastal and island defense, thus serving multiple strategic roles.
UDAN Scheme
- The UDAN scheme, launched in 2017, has already made a significant impact on regional air connectivity in India.
- The scheme was launched by the Ministry of Civil Aviation for regional airport development and regional connectivity enhancement.
- It is a part of the National Civil Aviation Policy 2016.
- The scheme was initially applicable for a period of 10 years.
- It has operationalized 579 routes, connecting 85 airports, which include 13 heliports and 2 water aerodromes.
- However, the scheme has faced challenges, such as the discontinuation of some routes due to factors like low passenger load factor after the initial three-year tenure, airline shutdowns, and low visibility at VFR (Visual Flight Rules) airports.
- Despite these challenges, the government sees the UDAN scheme as a revolutionary step in enhancing air connectivity.
- Recognizing its success and potential for further growth, the government plans to extend the scheme for another ten years.
- This extension aims to build on the achievements of UDAN while addressing any areas that require improvement to ensure the scheme’s sustainability and effectiveness.
Boosting Local Manufacturing of Aircraft
- Another significant element of the government’s announcement is the emphasis on promoting the design and manufacture of aircraft, helicopters, and seaplanes within India.
- By encouraging domestic production, the government aims to bolster local manufacturing capabilities in the aviation sector, reduce dependency on imports, and create new opportunities for the Indian aerospace industry.
- Several states, including Andhra Pradesh and Maharashtra, have already shown their willingness to participate in seaplane operations.
- This interest reflects the growing recognition of seaplanes as a viable and innovative solution for regional connectivity.
- By capitalizing on the natural water resources available in these states, seaplanes can provide efficient and convenient transport options, especially in areas where traditional airstrips may not be feasible.
Enhancing Regional Connectivity Through Innovation
- The introduction of seaplanes under the UDAN scheme represents a forward-thinking approach to enhancing regional air connectivity in India.
- By leveraging innovative solutions like seaplanes, the government aims to overcome geographical and infrastructural challenges, making air travel more accessible to a broader population.
- This initiative not only supports the tourism industry but also opens up new avenues for economic development in remote and underserved regions.