The scheme proposes to facilitating and incentivizing movement of Agri-produce by air transportation
India’s Civil Aviation Minister Jyotiraditya M Scindia recently released Krishi UDAN 2.0 that lays out the vision of improving value realization through better integration and optimization of agri-harvesting and air transportation and contributing to the agri-value chain sustainability and resilience under different and dynamic conditions. The scheme proposes to facilitating and incentivizing movement of Agri-produce by air transportation.
Scindia said that Krishi UDAN 2.0 was an example of this government’s collaborative approach towards policy making. The scheme, he said would open up new avenues of growth for the agriculture sector and help attain the goal of doubling farmers’ income by removing barriers in supply chain, logistics and transportation of farm produce.
“We want to take the Annadata (the farmer or the giver of food) to the highest level, by adopting the A2A model: Agriculture to Aviation. The convergence between the two sectors is possible because of 3 primary reasons – Evolutionary possible use of biofuel for aircraft in future, use of drones in agriculture sector, and due to greater integration and value realisation of agricultural products through schemes like Krishi UDAN,” said Scindia
The enhanced version of the Krishi UDAN scheme was formulated with support from AAICLAS – a 100 per cent 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 pilot the scheme for six months and will introduce amendments based on results of the evaluation and 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 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.
There is a proposal to develop a platform that 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
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.
53 airports have been 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, the scheme covers the north, the entire western coast and the southern India (including two islands).
Airports for implementation of Krishi Udan 2.0 have been selected with the aim of providing benefit to the entire country. The airports not only provide access to regional domestic markets but also connects them to international gateways of the country.
Development of E-KUSHAL (Krishi Udaan for Sustainable Holistic Agri-Logistics). There is a proposal to develop a platform that 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).
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