Government Plans to Extend RCS-UDAN Scheme, Set Up SPV for Aircraft Manufacturing in India

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New Delhi: The UDAN (Ude Desh ka Aam Nagrik) scheme which was launched by the central government on October 21, 2016, to make air travel affordable for the people has been successful.

Civil Aviation Minister Ram Mohan Naidu Kinjarapu claiming the “huge success” of the Regional Connectivity Scheme (RCS)-UDAN, has said the Centre “wants” to extend it for another 10 years.

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The Civil Aviation Minister on September 4 said, “..We have observed the huge success that the RCS UDAN scheme has achieved. So, we want to extend it for another 10 years and see what gaps are there and try to address them…Right now, we have 157 (airports), in the plan of Viksit Bharat for 2047, we are planning to improve these 157 airports to 400 airports – including waterdrome airports, heliports and everything.”

“We still feel that India has an opportunity to double the airports that are there today, and we are going to work on it…” he stated.

Indicating that India will soon enter into aircraft manufacturing to make India a global hub for aircraft manufacturing, the Civil Aviation Minister said, “We want to inform the industry that the government is strongly pushing into the idea of India manufacturing its own plane.”

Highlighting the potential of the country’s fast-growing aviation sector, the minister said that the government will set up a special purpose vehicle to push ahead with plans to start manufacturing commercial aircraft in India.

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“The government is strongly pushing the idea of India manufacturing its own planes,” Naidu said, adding that a special purpose vehicle will be set up with industry stakeholders and others.

Responding to a query, whether international giants like Airbus and Boeing would be part of the SPV, Civil Aviation Minister Naidu remarked, “We are a major client for them, and they have a strong inclination to partner with us. We will involve everyone in terms of know-how and expertise.”

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In August, the Bhartiya Vayuyan Vidheyak Bill 2024 was passed by the Lok Sabha. The Bill includes provisions to regulate the design and manufacturing of aircraft, supporting the Aatmanirbhar Bharat initiative for self-reliance. The Bill seeks to remove redundancies and replace the Aircraft Act, 1934 – that has been amended 21 times.

According to the minister, efforts are being to ensure that aircraft manufacturing activities can start in the next five years. “We want to be a big player for manufacturing planes and also export them,” Naidu said. The minister emphasised that the government aimed to expand this initiative dramatically not only to meet domestic demand but also to position India as an exporter of aircraft.

One of the world’s fastest growing civil aviation markets, India is a key market for aircraft manufacturers – Boeing and Airbus. State-owned Hindustan Aeronautics Ltd (HAL) is already into manufacturing small civilian planes but on a smaller scale.

“Our intention is to build the final plane here in India,” Naidu stated. He acknowledged that while there might be a need to source certain components or engines from other players initially, the goal was to develop a self-sustaining ecosystem where every part could eventually be manufactured within the country.

The minister speaking at a conference organised by industry body PHD Chamber of Commerce and Industry, also said there is a lot of potential in the country for MRO (maintenance, overhaul and repair) activities.

Noting that the Indian aviation sector is at the “transformative crossroads”, the aim is to make the country a hub for aviation, air cargo, and MRO activities, the minister said.

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