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RCS-Udan scheme 


Paper: GS 3

Subject: Indian Economy

Topic: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.


UDAN is a regional connectivity scheme spearheaded by the Government of India (GoI). The full form of UDAN is ‘Ude Desh ka Aam Nagarik’ and aims to develop smaller regional airports to allow common citizens easier access to aviation services.

Objectives of the Regional Connectivity Scheme

  • Operationalization and development of 425 underserved or unserved airports in the country
  • Boost inclusive economic development by providing faster connectivity
  • Development of air transport infrastructure in remote areas aiding job growth



UDAN Scheme


This scheme is a part of the National Civil Aviation Policy (NCAP) and is funded jointly by the GoI and the state governments. The following are its salient features:

  • The scheme duration is for 10 years
  • Airlines participating in UDAN are selected through a competitive bidding process
  • The Central government will provide the following:
  • Subsidy to cover Value Gap funding (VGF) for participating airlines
  • Concessional GST on tickets booked using the scheme
  • Codesharing for flights under the policy
  • State Governments will extend the following measures:
  • GST reduction to 1% for 10 years
  • Coordination with oil companies to facilitate refuelling facilities
  • Provide land for airport and ancillary development
  • Trained security personnel
  • Utilities at subsidised rates
  • 20% of VGF
  • Airport operators such as AAI will provide the following concessions:
  • No parking, landing and storage charges at participating airports
  • Nil TNLC (Terminal Navigation Landing Charges)
  • Allow ground handling by the airline selected through the bidding process
  • RNCF (Route Navigation and Facilitation Charges) will be discounted to 42.4% of normal rates by the Airports Authority of India

Value Gap Funding is not provided to cargo airlines. All other terms and conditions remain the same as passenger airlines. The fares are graded based on distance and flight hours for both fixed-wing and rotary-wing services. The RCS subsidy is funded by a levy of Rs 5000 per flight on major routes. Flights regulated under this policy framework can be booked from the UDAN website and major travel portals by passengers.


Fisheries and Aquaculture Development Fund (FIDF)


Paper: GS 3

Subject: Indian Economy

Topic: Economics of animal rearing.


  1. FIDF would provide concessional finance to State Governments / UTs and State entities, cooperatives, individuals and entrepreneurs etc., for taking up of the identified investment activities of fisheries development.
  2. Under FIDF, loan lending will be over a period of five years from 2018-19 to 2022-23 and maximum repayment will be over a period of 12 years inclusive of moratorium of two years on repayment of principal.
  3. National Bank for Agriculture and Rural Development (NABARD), National Cooperatives Development Corporation (NCDC) and all scheduled Banks shall be the nodal Loaning Entities.

Modern Train Control System to be implemented on Indian Railways


Paper: GS 3

Subject: Indian Economy

Topic: Infrastructure – Energy, Ports, Roads, Airports, Railways etc.


Indian Railways has decided to modernize its Signalling system on its entire network by implementing Modern Train Control system with LTE based MTRC. This is one of the most ambitious modernization projects of Indian Railways, which envisages upgradation of signalling system for improving safety, Line Capacity and to run trains at higher speed.


Accordingly, a work of Modernization of Signalling system on entire Indian Railway network has been included in Works Programme 2018-19 at a cost of Rs. 77,912 Crores, to be implemented after approval of NITI Aayog, Extended Board for Railways (EBR) and sanction of CCEA. The work includes provision of


  • Automatic Train Protection (ATP) System
  • Electronic Interlocking System
  • Remote Diagnostic & Predictive Maintenance System
  • Long Term Evolution (LTE) based Mobile Train Radio Communication (MTRC) System
  • Centralized Traffic Control System (CTC) /Train Management System (TMS)

As a prelude to taking up the above modernization work of signalling system on pan-India basis, 4 works of total 640 Route KM at a total cost of Rs. 1810 Crores have been sanctioned as pilot projects in Supplementary WP 2018-19 for extensive trials. The four sections are Renigunta (RU) – Yerraguntla (YA) section on South Central Railway, Vizianagaram (VZM) –Palasa (PSA) section on East Coast Railway, Jhansi (JHS) – Bina (BINA) Section on North Central Railway and Nagpur (NGP) – Badnera (BD) Section on Central Railway. These are some of the busiest routes on Indian Railway with heavy traffic.