Regional Connectivity Fund Highlights

Q.  Which of the following is/are true regarding Regional Connectivity Fund (RCF)?

1) The Regional Connectivity Fund will be funded by a small levy per departure on all domestic flights except a few routes.
2) States will also contribute to the Regional Connectivity Fund.
- Published on 14 Nov 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Both 1 and 2
 
  • The objective of Regional Connectivity Scheme, UDAN (Ude Desh ka Aam Naagrik) is to enhance air passenger traffic in the country by stimulating demand on regional routes.
  • Amount collected as Regional Connectivity Fund (RCF) will be used to provide financial support to airlines in the form of Viability Gap Funding (VGF) for operations under the Scheme.
  • As per the directions of MoCA, RCF will be funded by a small levy per departure on all domestic flights other than the ones on Category II / Category IIA routes under RDG, RCS Routes and aircraft having maximum certified takeoff mass not exceeding 40,000 kg.
  • The RCF would channel funds generated from the sector to stimulate further growth and development of the sector itself.
  • A part of the fund will also be contributed to by the states that have signed the UDAN MoU: 19 states have either signed or given their consent.

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