The Government of India has identified 21st October as UDAN Day, the day on which the scheme document was first released.
The scheme is aimed at enhancing connectivity to remote and regional areas of the country and making air travel affordable.
It is a key component of the Centre’s National Civil Aviation Policy led by Prime Minister Narendra Modi and launched in June 2016.
Under the scheme, nearly half of the seats in Udan flights are offered at subsidized fares, and the participating carriers are provided a certain amount of viability gap funding (VGF) – an amount shared between the Centre and the concerned states.
The scheme will be jointly funded by the central government and state governments.
The scheme will run for 10 years and can be extended thereafter.
The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands.
The airports that had already been developed by the Airports Authority of India (AAI) are given higher priority for the award of VGF (Viability Gap Funding) under the Scheme.
Under UDAN 4, the operation of helicopters and seaplanes is also been incorporated