Why in the news ?
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Government has invited proposals from interested air operators for the international version of its ‘Udan’ (Ude Desk Ka Aam Nagrik scheme.
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The government is working on another version of the scheme which seeks to enhance air connectivity from India to select overseas destinations.
More in the news
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Government took this step despite the domestic format of the scheme failing to yield desired results.
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Almost half of the routes approved in the first phase of the bidding for the scheme still to be launched.
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National airports operator AAI, which has been mandated to implement the international version of the Udan scheme, has invited “e-proposals (bids) from international bidders.
UDAN scheme
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The UDAN Scheme aims at providing connectivity to un-served and under-served airports of the country through revival of existing airstrips and airport.
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The regional connectivity scheme will be applicable on route length between 200 to 800 km with no lower limit set for hilly, remote, island and security sensitive regions.
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The scheme will provide an airfare cap of Rs 2,500/hr of flying.
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The Central government will provide concessions to the tune of 2 per cent excise on Value Added Tax (VAT) and service tax at 1/10th the rate and liberal code sharing for regional connectivity scheme airports.
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For balanced regional growth, allocations will be spread equitably across 5 regions – North, West, South, East and North East with a cap of 25 percent.
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Market-based reverse bidding mechanism to determine least Viability Gap Funding to select the airline operator with the right to match to the initial proposer.
Source
The Hindu, Indian Express