1. UDAN: Govt to consult stakeholders before 2nd round of bidding

UDAN: Govt to consult stakeholders before 2nd round of bidding

The second round of bidding will begin in July and close by August.

By: | New Delhi | Published: May 25, 2017 6:23 AM
A stakeholder consultation meeting will be conducted on July 7 to discuss the probable changes to the RCS scheme. (Reuters)

Before starting the second round of bidding for the regional connectivity scheme (RCS), the Ministry of Civil Aviation will consult the stakeholders — airlines and state governments — on the four proposed changes it wants to make to make the scheme more investor-friendly. The second round of bidding will begin in July and close by August.

Before the bidding for the routes starts, the ministry wants stakeholders’ response for some reduction to the three-year exclusivity given to successful bidders in a particular route in the commercially-viable ones. The ministry wants to reduce it to one year in order to let other airlines operate on the same route.

Also, routes which fall under the 150-km category are likely to be considered by the ministry in the second round of bidding. At present, subsidised seats are calculated on the basis of per aircraft operated on a particular route, and the ministry wants to change it to the total number of seats in a given week.

A stakeholder consultation meeting will be conducted on July 7 to discuss the probable changes to the RCS scheme. According to civil aviation secretary Rajiv Nayen Choubey, the ministry will hold active consultations with the state governments and airlines on the proposed changes. UDAN is yet to take off properly since only two successful bidders — Air India and TrueJet — have started operations.

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