UDAN: Govt gets 141 initial proposals from 17 players in 2nd round bidding

As many as 141 initial proposals for air services, including operating aircraft and helicopters, on 502 routes have been received under the second round of regional air connectivity scheme, the government said on Tuesday.

Civil Aviation Minister Ashok Gajapathi Raju said the second round of bidding has attracted "very good response" and that 17 players have come up with initial proposals.

The ambitious scheme, where fares are capped at Rs 2,500 for one-hour flights, seeks to connect unserved and under- served airports.

The initial proposals involve 502 routes that seek to connect a total of 126 airports and helipads. These include 49 unserved and 15 under-served airports as well as 24 helipads, according to the civil aviation ministry.

Out of the total proposals, 108 are for flying fixed wing aircraft and 33 for operating helicopters.

Details of the players were not disclosed.

Civil Aviation Secretary R N Choubey said that for 20 proposals no viability gap funding have been sought by the bidders.

Operators participating in UDAN are eligible to get viability gap funding.

"UDAN is on right track," Raju said citing the number of initial proposals received in the second round of bidding.

On November 16, these proposals would be put up for counter bidding and the players in the second round are likely to be declared by the third week of December.

In the first round of bidding under the scheme, also known as Ude Desh ka Aam Naagrik (UDAN), 128 routes that would connect 70 airports were awarded to five airlines. Some of the routes are already operational.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel