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UDAN to Cost Government Rs. 6.6 Crore Annually
May 08, 2017
The government scheme UDAN (Ude Desh ka Aam Naagrik) aimed at providing affordable air travel to the “common man” will cost the government Rs. 6.6 crore just for the first sector regional connectivity on the Shimla-Delhi route that started last week. This is after the exemption from the various applicable taxes.
As agreed, the Central government is paying Rs 3,440 for 24 seats (that are covered under viability gap funding or Rs 82,560 per flight via ATR42 type aircraft that’s been chosen for the route. The remaining 11 seats on the aircraft are being sold at Rs. 5,000 per seat. Each flight is causing a loss of Rs. 141,950 which is borne by the Himachal Pradesh government. To keep the scheme afloat both the Central and State government will be paying Rs. 6.6 crore every year.
