✎ Revised UDAN scheme enhances air connectivity in Himachal via 10-year tripartite MoU with 20:80 VGF funding.
Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
A tripartite agreement was signed between the Himachal Pradesh government, the Ministry of Civil Aviation, and the Airports Authority of India (AAI) to strengthen air connectivity and related infrastructure in the state under the revised Regional Connectivity Scheme-UDAN. The MoU, valid for ten years, was executed in the presence of Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu and Minister of State for Civil Aviation Muralidhar Mohol. Under the agreement, the state government will contribute 20% of the viability gap funding (VGF), while the central government will cover the remaining 80%. Airlines will then participate in a tender process to operate routes, with the Himachal government recently seeking a revised 90:10 funding ratio to address high operational costs in the state’s challenging mountainous terrain.
This initiative aims to boost tourism, economic growth, and accessibility in Himachal Pradesh by expanding regional air connectivity. For banking and SSC aspirants, this policy reflects the government’s focus on regional development through public-private partnerships, a key topic in governance and economic policies. RBI Grade B candidates should note how such schemes integrate fiscal federalism, VGF mechanisms, and infrastructure financing, which are often tested in economic and financial awareness sections.
Source: amarujala.com
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