Consider the following statements about ‘Ude Desh ka Aam Nagrik (UDAN)’ scheme : 1. It is an innovative scheme to develop the regional aviation market. 2. It creates affordability yet economically viable and profitable flight on regional routes. Which of the statements given above is/are correct?

The 'Ude Desh ka Aam Nagrik' (UDAN) scheme is a first-of-its-kind global initiative designed to jump-start the regional aviation market [2]. Launched by the Ministry of Civil Aviation, it aims to promote regional connectivity by making flying affordable for the common citizen [2][1]. Statement 1 is correct as it is an innovative market-based mechanism to develop regional routes [1]. Statement 2 is also correct because the scheme ensures economic viability for airlines through Viability Gap Funding (VGF) and concessions, such as tax benefits and waived airport charges, while maintaining affordability via airfare caps (e.g., ₹2,500 for a one-hour journey) [1][2]. The VGF is funded through a Regional Connectivity Fund, with contributions from both the Centre and States in an 80:20 ratio, ensuring that even low-demand regional routes remain profitable for operators [1].

Sources

1. [2] INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 7: Transport and Communication > Oceanic Routes > p. 82
2. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Regional Connectivity Scheme (RCS) > p. 424