Regional Connectivity Fund - UDAN harnesses power of markets for public good

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

1) The national scheduled airlines providing services on domestic routes where fees for RCF per departure are levied would not be eligible under the Scheme to avail benefits of RCS.
2) Globally, UDAN is the first-of-its-kind scheme globally which harnesses the power of the markets to provide a public good.
- Published on 14 Nov 16

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

ANSWER: Only 2
 
  • Regional Connectivity Fund (RCF) will be funded by a small levy per departure on all domestic flights.
  • The national scheduled airlines providing services on domestic routes where such fee per departure is levied would also be eligible under the Scheme to avail benefits of RCS.
  • Similarly, even the passengers would be benefited through additional connectivity on regional routes at prices which are at or below the airfare caps.
  • The amount collected under the levy will be ploughed back into the sector.
  • The economic importance of promoting regional or remote connectivity is well understood across the world. Geographically large countries like the USA, Canada, Brazil and Australia among many others support regional and remote connectivity.
  • UDAN is the first-of-its-kind scheme globally which harnesses the power of the markets to provide a public good.

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