KRISHI UDAN SCHEME 2.0

INTRODUCTION

  • The Ministry of Civil Aviation launched ‘Krishi Udan 2.0’ on 27 October, 2021. On this occasion, Union Civil Minister Jyotiraditya Scindia, said the scheme is introduced to optimize and incentivize air transport of agriculture produce from hilly areas, northeastern states, and tribal areas across the country.
  • It is the extension of Krishi Udan Scheme 1.0, which was announced by Finance Minister Nirmala Sitharaman during Budget speech in 2020. Earlier, it focused at providing air transport to agricultural production by local farmers of northeastern states only.

OBJECTIVES

  • A collaborative approach of government towards policymaking.
  • To encourage growth avenues for the agriculture sector.
  • Aim to double the income of farmers by enhancing supply chain, logistics, and transportation of farm produces.
  • Strategically connecting remote farming areas to regional and international markets.
  • The scheme will benefit farmers, freight forwarders and airlines.

FORMULATION

  • The plan of the scheme is prepared by AAICLAS (100% subsidiary of the Airport Authority of India) and Invest India (India’s National Investment Promotion & Facilitation Agency under Ministry of Commerce and Industry).

FEATURES

  • It is based on A2A model that will lead to integration of Agriculture and Aviation because of three reasons – use of drones in the agriculture sector, use of biofuel for aircraft in future, and actual value realization of agricultural products.
  • Under the scheme, Indian freighters will be given full waiver of parking, landing RNFC and RNLC charges at selected airports.
  • It will boost cargo infrastructure by developing hub and spoke model and a freight grid. Airside transit and trans-shipment structure will be built at Guwahati and Bagdogra, Leh, Srinagar, Nashik, Nagpur, Raipur, and Ranchi airports.
  • It will encourage the states to cut down the sales tax to 1% on ATF for P2C aircraft and freighters under the UDAN scheme.
  • It will cause resource pooling through merging different government departments, regulatory bodies to provide concessions and incentives to freight forwarders, airlines, and other stakeholders to expand air-transport facilities for agri-produce.
  • An application called e-KUSHAL (Krishi UDAN for Sustainable Holistic Agri-Logistics) will be developed to broadcast information to relevant stakeholders. This application will be integrated with National Agriculture Market (e-NAM).

LOCATIONS

  • The Ministry and AAI has paired up to establish hubs and spoke model in several location for transport of agri-products.
   

     YEAR

 

             LOCATIONS
  2021-22 Agartala, Dibrugarh, Dimapur, Hubbali, Imphal, Jorhat, Lucknow, Lilabari, Srinagar, Silchar, Tezpur, Tirupati, and Tuticorin
  2022- 23 Ahemadabad, Bhavnagar, Jharsuguda, Kozhikode, Mysuru, Puducherry, Rajkot, and Vijayawada
  2023-24 Agra, Darbhanga, Gaya, Gwalior, Pakyong, Pantnagar, Shillong, Shimla, Udaipur and Vadodara.
  2024-25 Salem and Holangi

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