Krishi Udan Scheme 2.0

Syllabus: General Studies Paper 2

Krishi Udan Scheme 2.0 was announced on 27 October 2021 enhancing the existing provisions, mainly focusing on transporting perishable food products from the hilly areas, North-Eastern States and tribal areas. 

• For facilitating and incentivising movement of agri-produce by air transportation, Airports Authority of India (AAI) provides full waiver of Landing, Parking, Terminal Navigational Landing Charges (TNLC) and Route Navigation Facility Charges (RNFC) for Indian freighters and P2C (Passenger-to-Cargo) Aircraft. 
• The scheme primarily covers around 25 airports focusing on North Eastern, Hilly and Tribal region besides 28 airports in other regions/areas. 
• After evaluation of Krishi Udan 2.0, five more airports have been included making it to total 58 airports.
• Krishi Udan Scheme is a convergence scheme where eight Ministries/Departments namely Ministry of Civil Aviation, Department of Agriculture & Farmers’ Welfare, Department of Animal Husbandry and Dairying, Department of Fisheries, Ministry of Food Processing Industries, Department of Commerce, Ministry of Tribal Affairs, Ministry of Development of North-Eastern Region would leverage their existing schemes to strengthen the logistics for transportation of Agri-produce.

The main objective of the Krishi Udan Scheme 2.0 is 

• To increase share of air carriage in the modal mix for transportation of Agri-produce, which includes horticulture, fishery, livestock and processed products. 
• The scheme assists farmers in transporting agriculture products so that it improves their value realisation.
• The Scheme aims to ensure seamless, cost-effective, time bound, air transportation and associated logistics for all Agri-produce originating especially from North-East, hilly and tribal regions of the country. 
• Facilitating and incentivizing movement of Agri-produce by air transportation: The scheme will provide a full waiver of landing, parking, Terminal Navigation and Landing Charges and Route Navigation Facilities Charges for domestic airlines.
• Strengthening cargo-related infrastructure at airports and off airports: The Ministry will facilitate the development of a hub and spoke model and freight to transport perishable products.
• Concessions sought from other bodies: The Ministry has asked states to reduce sales tax on Aviation Turbine Fuel (ATF) to 1 percent for airlines under Krishi UDAN 2.0.
• Resources-Pooling through establishing convergence mechanism: Collaboration with other government departments and regulatory bodies.
• Focus Routes: Seven focus routes and the agro products to be flown from there have been identified under the scheme.

Implementing Agency

• The enhanced version of the Krishi UDAN scheme was formulated with support from AAI Cargo Logistics and Allied Services Company Limited (AAICLAS) – a 100% subsidiary of the Airports Authority of India and Invest India, India’s national Investment Promotion & Facilitation Agency, under the Ministry of Commerce and Industry.

Question: Explain Krishi Udan Scheme and also highlights its major objectives.