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New Helipads Planned Under UDAN Scheme in Himachal Pradesh

Source:tribuneindia ↗

Why It Matters

The article highlights the practical implementation and challenges of the UDAN scheme in hilly terrains. It underscores the critical role of Viability Gap Funding (VGF) in sustaining public-private infrastructure projects and the direct correlation between transportation infrastructure (like heliports) and the tourism-driven economy of Himachal Pradesh.

Summary

The Union Government is set to develop 200 modern helipads under the next phase of the UDAN (Ude Desh ka Aam Naagrik) scheme with an investment of Rs 3,661 crore. This expansion aims to enhance air connectivity in geographically challenging and priority areas, particularly Himachal Pradesh. Currently, eight helicopter routes operated by Heritage Aviation and Pawan Hans connect key locations in the state, including Shimla, Mandi, Kullu, and Chandigarh. The Centre's strategy relies on Viability Gap Funding (VGF) to sustain operations, although some earlier routes were discontinued after the initial 3-year VGF period ended, compounded by low passenger demand and adverse weather conditions. The enhanced heliport infrastructure is expected to significantly boost tourism, emergency response, and socio-economic integration in the hilly state.

Key Points

  • The Centre plans to construct 200 modern helipads across India with an outlay of Rs 3,661 crore under the upcoming phase of the UDAN scheme.
  • The primary goal is to boost regional connectivity in geographically difficult terrains and priority areas, prominently including Himachal Pradesh.
  • In Himachal Pradesh, helicopter services are currently active from Rampur, Mandi, Reckong Peo, and Shimla, addressing the connectivity gaps posed by hilly landscapes.
  • Presently, eight routes are operated in the state by Pawan Hans and Heritage Aviation, linking towns like Shimla, Kullu, Chandigarh, and Mandi.
  • Discontinuation of several earlier routes was attributed to the lapse of the 3-year Viability Gap Funding (VGF) (worth Rs 55.53 crore), low passenger demand, and operational challenges like poor visibility.

Important Terms

UDAN (Ude Desh ka Aam Naagrik) scheme

A Regional Connectivity Scheme launched in 2016 by the Ministry of Civil Aviation. It aims to make air travel affordable by reviving and connecting unserved and underserved regional airports and heliports.

UPSC context

GS Paper II & III. Highlights regional development, infrastructure growth, and inclusive governance in the aviation sector.

Source
Viability Gap Funding (VGF)

A government capital grant designed to support infrastructure projects that are economically essential but commercially unviable for private investors, bridging the gap between project costs and expected revenues.

UPSC context

GS Paper III (Economy). Critical for understanding infrastructure financing, Public-Private Partnerships (PPPs), and government subsidy mechanisms.

Source
Pawan Hans

A Mini Ratna-I Public Sector Undertaking providing helicopter services. The government recently approved the strategic disinvestment of its 51% stake along with management control to a private consortium.

UPSC context

GS Paper III (Indian Economy). Relevant for topics covering public sector disinvestment, privatization policy, and aviation infrastructure.

Source

Prelims Trap

VGF under the UDAN scheme provides a permanent operational subsidy to keep unviable regional flights running.

VGF under UDAN is an incubation subsidy strictly limited to 3 years per route. After this period, operators must sustain operations commercially without government funding.

Static Concepts Connected

Economy: Infrastructure

What is the economic rationale and mechanism of Viability Gap Funding (VGF)?

  • Definition: A capital grant or subsidy to support infrastructure projects that are economically justified but fall short of strict financial viability.
  • Mechanism: It bridges the gap between project cost and expected revenues to incentivize private sector participation in PPP projects.
  • UDAN Application: Under UDAN, operators bid for routes and ask for VGF to subsidize operations while capping fares for a percentage of seats.
Government Schemes

What are the key features of the Regional Connectivity Scheme (RCS-UDAN)?

  • Objective: To enhance air connectivity to unserved and underserved airports in tier-2 and tier-3 cities.
  • Fare Capping: Airfares are capped (originally at Rs 2,500 per hour of flight) for a designated number of RCS seats.
  • Broad Coverage: The scheme covers not only fixed-wing aircraft but also helicopters and water aerodromes (seaplanes).

Cross-Topic Patterns

  • VGF limits & PPP market failures

    The discontinuation of helicopter routes post-VGF highlights the broader limits of PPP models in geographically challenging terrains where sustained market demand often fails to emerge organically.

  • Tourism infrastructure vs. Disaster Resilience

    Heliport expansion in Himachal intersects with GS-3 Disaster Management, offering crucial dual-use infrastructure for both eco-tourism and rapid NDRF deployment during frequent Himalayan landslides.

Expect a combined prelims question linking VGF economic mechanics with UDAN’s expansion into helicopter and seaplane networks.

Linked PYQs · 1

Linked PYQs · 1

  • 2024HPAS_PRELIMSGS1

    Arrange the following years based on the number of foreign tourist arrivals in Himachal Pradesh in descending order : (1) 2020 (2) 2021 (3) 2022 (4) 2023 (up to December 2023) Choose the correct option :