The GST Council has decided to provide a three-year GST exemption for viability gap funding (VGF) given under the regional air connectivity scheme. <br/><br/>The scheme, also known as UDAN (Ude Desh ka Aam Naagrik) seeks to connect unserved and under-served airports as well as make flying more affordable. <br/><br/>The participating airlines are eligible for VGF subject to certain conditions.<br/>The civil aviation ministry contributes 80 per cent of the VGF amount, while the remaining comes from the state governments concerned and in the case of north-eastern states and Union territories, the sharing ratio is 90:10. A total of 128 routes connecting 70 airports were awarded in the first round of bidding under the scheme. <br/><br/>