Krishi UDAN 2.0

What is Krishi UDAN 2.0 Scheme?

• Krishi UDAN 2.0 lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation and contributing to Agri-value chain sustainability and resilience under different and dynamic conditions.
• The scheme proposes facilitating and incentivizing the movement of Agri-produce by air transportation.
• We are adopting the model of A2A – Agriculture to Aviation.
• The convergence between the two sectors is possible because of 3 primary reasons –

1. Evolutionary possible use of biofuel for aircraft in future,
2. Use of drones in the agriculture sector, and
3. Due to greater integration and value realisation of agricultural products through schemes like Krishi UDAN.

• The enhanced version of the Krishi UDAN scheme was formulated with support from 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.
• It offers full waiver of Landing, Parking, TNLC and RNFC charges for Indian freighters and P2C at selected Airports of Airport Authority of India primarily, focusing on NER, Hilly and Tribal region.
• The Krishi UDAN 2.0 will be implemented at 53 airports across the country mainly focusing on Northeast and tribal regions and is likely to benefit farmers, freight forwarders, and Airlines.
• The Ministry of Civil Aviation plans to be pilot the scheme for 6 months, and, will introduce amendments based on the results of the evaluation & consultations with other stakeholders.

Key Highlights of KRISHI UDAN 2.0:

• Facilitating and incentivizing movement of Agri-produce by air transportation: Full waiver of Landing, Parking, TNLC, and RNFC charges for Indian freighters and P2C at selected Airports of Airport Authority of India. Primarily, focusing on NER, Hilly, and tribal regions.
• Strengthening cargo-related infrastructure at airports and off airports: Facilitating the development of a hub and spoke model and a freight grid. Airside transit and transshipment infrastructure will be created at Bagdogra and Guwahati airports, and at Leh, Srinagar, Nagpur, Nashik, Ranchi, and Raipur airports as a part of a focus on NER, Tribal and Hilly Districts.
• Concessions sought from other bodies: Seek support and encourage States to reduce Sales Tax to 1% on ATF for freighters / P2C aircraft as extended in UDAN flights.
• Resources-Pooling through establishing Convergence mechanism: Collaboration with other government departments and regulatory bodies to provide freight forwarders, airlines, and other stakeholders with Incentives and concessions to enhance air transportation of Agri-produce.
• Technological convergence: Development of E-KUSHAL (Krishi UDAN for Sustainable Holistic Agri-Logistics). Platform to be developed facilitate information dissemination to all the stakeholders. Furthermore, integration of E-KUSHAL with the National Agriculture Market (e-NAM) is proposed.
• Total 53 airports are selected for the first phase of Krishi UDAN 2.0. – the majority of them are operated by AAI.
• The strategic selection of the airports is primarily focused on the northeast region. Additionally covers North, the entire western coast, and southern India (including two islands).
• Airports for implementation of KrishiUdan 2.0 are selected with the aim of providing benefit to the entire country Opted airports not only provide access to regional domestic market but also connect them to international gateways of the country.
• Development of E-KUSHAL (Krishi Udaan for Sustainable Holistic Agri-Logistics). Proposed to develop a platform that will facilitate information dissemination to all the stakeholders. This will be a single platform that will provide relevant information at the same time will also assist in coordination, monitoring, and evaluation of the scheme. Proposed convergence of E-Kushal with National Agriculture Market (e-NAM).
• Facilitating the development of a hub and spoke model and a freight grid (identified locations for cargo terminals)

7 focus routes & products

1. Amritsar – Dubai: Babycorn
2. Darbhanga - Rest of India: Lichis
3. Sikkim - Rest of India: Organic produce
4. Chennai, Vizag, Kolkata - Far East: Seafood
5. Agartala - Delhi & Dubai: Pineapple
6. Dibrugarh – Delhi & Dubai: Mandarin & Oranges
7. Guwahati - Hong Kong: Pulses, fruits & vegetables

Krishi Udan scheme

• Krishi Udan scheme was launched in 2020 to assist farmers in transporting agricultural products so that it improves their “value realization”.
• It was under the Ministry of Civil Aviation
• Every farmer of the country to be the beneficiary of this scheme.
• Benefits: Providing proper market national and international crops in time
• Purpose: To protect the crop of the farmer from ruin and provide maximum value to the farmer.
• Krishi Udan will be launched by the Ministry of Civil Aviation on international and national routes.
• This will immensely help improve value realisation on agricultural products, especially in the north-east and tribal districts
• It will be important to transport the crop of the farmers from one place to another with the help of special planes in time so that the farmer can reach the proper market before the crop gets spoiled.
• As a result, there will be an increase in the income of the farmers, which will help in doubling the income of agriculture announced by the central government.
• Under scheme financial incentives by the central government and the state government in terms of concession from airport operators to select airlines made available.
• Under this scheme bringing perishable things like milk, fish, meat etc. through airplanes is brought to the appropriate market at the earliest.

Click here to read everything about UDAN Scheme.