Answer:

UDAN is an innovative scheme of Ministry of Civil Aviation which aims to develop the regional aviation market. It is a market-based mechanism in which airlines bid for seat subsidies. This first-of-its-kind scheme globally will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns. It also lends a fillip to India’s aim of emerging as the third largest aviation market by 2020.