Page 619 - SSB Interview: The Complete Guide, Second Edition

The scheme will be in operation for 10 years with individual contracts for 3
years. The interested operators submit initial route proposals and the gap in
cost and revenue through Viability Gap Funding (VGF). To determine the
least VGF, the government will select airline operators on the basis of

market-based reverse auction mechanism. The implementing agency for the
scheme is the Airports Authority of India.

Funding

Under this scheme, the Central Government will fund 80% of the losses

incurred by the airlines by flying on regional routes. The rest of the loss will
be covered by the states. The states will also incentivise the airlines in the
form of lower excise duty at 2% and VAT at 1% on aviation turbine fuel at

RCS airports.

Achievements

UDAN or the Regional Connectivity Scheme (RCS) was introduced in April
2017. India had a total of 75 airports connected by scheduled commercial
flights. In the months since, 25 new airports and airstrips, belonging to states

and privately-held, have been added to the aerial network, with airlines, both
new and established ones, lapping up over 300 routes in the first two rounds
of bidding under UDAN. The third phase of allocation of UDAN routes may

happen in the coming months. The Ministry of Civil Aviation is currently
reviewing the progress made by carriers in the first round.

35. URJA GANGA YOJANA

Prime Minister Narendra Modi has laid the foundation stone of Urja Ganga,
the highly ambitious gas pipeline project originating in Varanasi, Uttar
Pradesh.

The gas pipeline project aims to provide piped cooking (PNG) gas to