Krishi Udaan Scheme 2.0

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

About Krishi Udan Scheme:

• Krishi UDAN Scheme was launched in August 2020, on international and national routes to assist farmers in transporting agricultural 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 Northeast, hilly and tribal regions of the country.
• 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.
• There is no specific budget allocation under Krishi Udan 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.

About Krishi Udan 2.0:

• After the Krishi UDAN success, Krishi Udan 2.0 was launched in 2021 to further boost the vision of the program.
• Under Krishi UDAN 2.0, perishable food items from tribal communities, Northeastern states, and hilly regions would be transported.

Main objectives 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 transhipment infrastructure will be created at Bagdogra and Guwahati airports, and at Leh, Srinagar, Nagpur, Nashik, Ranchi, and Raipur airports as a part of 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 forwarder, 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 in information dissemination to all the stakeholders. Furthermore, integration of E-KUSHAL with National Agriculture Market (e-NAM) is proposed.
• Total 53 airports are select 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 northeast region. Additionally covers North, entire western coast and southern India (including two islands).
• Airports for implementation of Krishi Udan 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 connects them to international gateways of the country.
• Development of E-KUSHAL (Krishi Udaan for Sustainable Holistic Agri-Logistics). Proposed to develop a platform which will facilitate in information dissemination to all the stakeholders.
  • This will be a single platform which 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)

Source: PIB