Krishi Udan scheme: Aviation Ministry to Launch Scheme for Transport of Agri-Products

The Aviation Ministry will launch the Krishi Udan scheme to assist farmers in transporting agricultural products so that it improves their value realization, said the Finance Minister Nirmala Sitharaman on Saturday during her union budget speech 2020.  Moreover, Krishi Udan Scheme will be launched by the Ministry of Civil Aviation on international and national routes which aimed to improve value realization (on agricultural products), especially in the north-east and tribal districts. Moreover, the 'Krishi UDAN' scheme is part of a 16-point program of the Narendra Modi government to boost agriculture and doubling farmer’s income by 2020. 

However, Udan (Ude Desh ka Aam Naagrik) scheme was launched by the Modi government in 2017 to improve regional connectivity across the nation. It’s a regional airport development and "Regional Connectivity Scheme" (RCS) of government of India with the objective of "letting the common citizen of the country fly", aimed at making air travel affordable and widespread, to boost inclusive national economic development, job growth and air transport infrastructure development of all of all regions and states of India.  

Under the scheme, financial incentives in terms of concessions from the Centre, state governments and airport operators are extended to selected airlines to encourage operations from unserved and underserved airports and keep airfares affordable. 

As per the report, at least half of the seats in Udan flights are run at subsidized fares, and the participating carriers are provided with a certain amount of viability gap funding (VGF), an amount shared between the Centre and the state concerned. 

The report says that the VGF( Viability Gap Funding) has been enhanced for aircraft having more than 20 seats and that would operate in priority areas -Ladakh, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, northeastern states, Andaman and Nicobar Islands and Lakshadweep.